17 January - Funds and Facilities slides

1. FUNDS AND
FACILITIES:
INNOVATIVE DATA
TRENDS
17 January 2019
Paul Horrocks and Tansher Singh

2. • Data surveys conducted by the OECD
• Funds and facilites: rationale and definitions
• Survey questionnaire and methodology
• Survey results
• Questions
Agenda

3. Mobilisation survey vs. Blended finance
funds and facilities survey
• Two teams work closely (e.g. consultations, joint staff)
• Anchored in different rationales (outflows from donors (but also now
CIVs) vs vehicle-centered approach focused on qualitative aspects)
• 2 surveys are complementary (e.g. One focuses on amounts, the
other maps the market)
• Different definitional perspectives: Blended finance distinguishes
finance by purpose and not source

4. Funds and facilites: rationale and definitions
FACILITIES FUNDS
CONTEXT
Development
finance
Financial sector
FUNDERS
Solely
development-
oriented (mostly
from donors)
At least one of the
funders is
commercial-oriented
BLENDED
CAPITAL
STRUCTURE
Never Possible
• Why?
– Sheer prominence of pooled vehicles in the blended finance landscape, and significant
volumes of finance allocated but little evidence on how these operate
• What?

5. Results from the 2017 survey on blended
finance funds and facilities (1/2)
Source: OECD 2017 and EDFI 2015 surveys of blended finance funds and facilities
INCREASE IN THE NUMBER OF BLENDED FINANCE FACILITIES LAUNCHED, 2000-16
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of facilities

6. Results from the 2017 survey on blended
finance funds and facilities (2/2)
Blended finance has
to be more
strategically
targeted based on
careful assessments
of what works in
different contexts
and geographies
HOW BLENDED FINANCE FUNDS AND FACILITIES TARGET THE SDGs
Source: OECD 2017 Survey on blended finance funds and facilities

7. • Scope, population, sample, responses
– Previous studies that were carried out by WEF – OECD RDFI and
EDFI in 2014-2015 were complemented by research
356 blended finance pooled vehicles:167 facilities and 189 funds
– 2017 Questionnaire sent to 152 entities 74 response
– 2018 We are targeting 500+ entities
2018 Survey questionnaire and methodology
• Survey questionnaire
Capital Structure / Portfolio
• Size
• Concessionality
• Instruments
• Investors
• Sectors and operations
Risk and Return
• Rate of retun
• Spread above LIBOR
• IRR in case of Private
Equity and Venture
Capital
Development Performance
• SDGs targeted
• Local currency
Monitoring and Evaluation
• Targets
• Accountability mechanism
• M&E
• Performance aggregates

8. Aid agencies
Asset managers
Bilateral development banks (e.g. World Bank, IADB, AfDB, AsDB)
Bilateral DFIs (e.g. DEG, Proparco, CDC, FMO)
OtherPlease note that this is just for
visualisation and isn’t a
representation of statistically
significant data
INVESTORS IN BLENDED FINANCE FUNDS
2018 survey on blended finance funds and
facilities (1/2)
Non-LCY Hedged Unhedged
CURRENCY EXPOSURE

9. Please note that this is just for
visualisation and isn’t a
representation of statistically
significant data
Development Concessional
Development Non-Concessional
Commercial
CONCESSIONALITY IN ALL BLENDED
FINANCE FUNDS VS FINANCIAL
SERVICES TARGETED FUNDS
2018 survey on blended finance funds and
facilities (2/2)
0%
20%
40%
60%
80%
100%
SDG 1
No poverty
SDG 2
Zero hunger
SDG 3
Good health and well-being
SDG 4
Quality education
SDG 5
Gender equality
SDG 6
Clean water and sanitation
SDG 7
Affordable and clean energy
SDG 8
Decent work and economic growth
SDG 9
Industry, innovation and
infrastructure
SDG 10
Reduced inequalities
SDG 11
Sustainable cities and communities
SDG 12
Responsible consumption and
production
SDG 13
Climate action
SDG 14
Life below water
SDG 15
Life of land
SDG 1 6
Peace, justice and strong
institutions
SDG 17
Partnerships for the Goals
2017 2018
HOW BLENDED FINANCE FUNDS AND
FACILITIES TARGET THE SDGs

10. THANK YOU