2018 IFC DFI Blended Finance Report

 

9The increasing use of concessional funds blended with Development Finance Institutions’ (DFIs’) own financing and that of others on commercial terms has brought the DFIs together to help set common standards for implementation and to review the merits and adequacy of existing approaches targeting private finance mobilisation. In October 2017, the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations (DFI Enhanced Principles) were approved. This report considers developments by DFIs to strengthen the methodology for collection and analysis of blended concessional finance data by using more refined definitions, accounting methodology and reporting.

New data show that in 2017 DFIs financed projects with a total volume of more than US$8.8 billion using approximately US$1.2 billion in concessional funds and about US$3.9 billion in DFI own account resources. Private sector finance mobilized for these projects was more than US$3.3 billion. The report finds projects financed in 2017 illustrate how blended concessional finance is a critical tool to develop private sector markets, foster innovation, and crowd in private finance in some of the most challenging settings.