17 January - Blue Orchard presentation

1. Blended Finance 2.0: Giving Voice to the Private Sector
Maria Teresa Zappia, BlueOrchard
OECD Paris, 17 January 2019

2.  Since inception, BlueOrchard has
managed 14 funds: 8 active today
 5 are Blended Finance mandates
 10 SDGs addressed through our funds:
BlueOrchard at a glanceInvesting for Empowerment
Leading EM impact investment
manager with a 20-year track record,
founded by the initiative of the
United Nations
Focused on credit, private equity
and infrastructure assets in
emerging markets
Rigorous investment process with
emphasis on fundamental bottom
up analysis and social impact due
diligence
Experienced international investment
team having disbursed in excess of
USD 5bn since inception, reaching 37
million people in over 80 countries
Licensed Asset Manager by FINMA
and authorized UCITS and AIF
manager by CSSF
Track record

3. BlueOrchard’s Footprint in Blended Finance
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

4. BLUEORCHARD
STUDY and
SURVEY

5. What is Blended Finance?
“Funding by public investors
and foundations in de-
risking instruments to
crowd in private capital in
frontier and emerging
markets in order to
accelerate the achievement
of the SDGs by scaling-up
activities.”
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

6. FINDINGS OF
BLUEORCHARD
BLENDED FINANCE
SURVEY ON
PRIVATE INVESTORS

7. Giving Voice to the Private Sector (I)
Regional and Sectoral Preferences
Regional Preferences
Sector Preferences
Global blended finance transactions
that do not have a regional focus
are preferred by the largest
proportion of respondents.
Financial inclusion, sustainable
infrastructure and climate finance
are the preferred sectors by the
respondents.
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

8. Giving Voice to the Private Sector (II)
Asset Class and Investment Term Preferences
Investment Term Preferences
Asset Class Preferences
There is a strong inclination for
private debt, with some
respondents being also in favour of
a mix of debt and equity.
Majority of the respondents prefer
an investment period between 3
and 7 years.
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

9. Giving Voice to the Private Sector (III)
Expectations and Requirements
Expectations on Public Investors
Return Expectations Liquidity Requirements
Private investors do
not expect public
investors necessarily
to be subordinated
at concessional
rates.
Majority of surveyed
investors expect
market-returns.
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

10. Giving Voice to the Private Sector (IV)
Priorities
The most relevant features are:
I. Provision of 1st loss capital
II. Protection against portfolio losses
III. Collateralization of guarantees
offered by public institutions
IV. Financial returns combined with
rigorous impact management to
accelerate the achievement of the
SDGs
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

11. BLUEORCHARD’S
VISION OF
BLENDED FINANCE 2.0

12. 12
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.
Main Elements of Blended Finance 2.0

13. The Mobilization Imperative
Source: BlueOrchard 2018. Blended Finance 2.0: Giving Voice to the Private Sector.

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