For a full breakdown of African private capital fund closes since 2023, visit our Dealmaker’s Log.
Canada’s bilateral development finance institution, FinDev Canada, has made a $33 million commitment to the BlueOrchard Climate Action Mobilisation Fund (BOCAMF), a private debt fund structured as a blended finance vehicle that reached its first close of $250 million.
The fund also received commitments from private-sector institutional investors Aviva Life and Daido Life Insurance Company, as well as Schroders and British International Investment.
The fund will provide senior loans to financial institutions that channel climate finance to small and medium-sized enterprises and to companies directly. The target markets include Asia-Pacific, Africa, and Latin America.
The fund represents the first blended finance vehicle focused on emerging and development markets to issue notes with a publicly available investment-grade A3 rating assigned by Moody’s, a leading international credit rating agency under its closed-end fund methodology.
“The scale of the climate challenge demands that we find new ways to mobilise institutional capital for emerging markets. This first-of-its-kind fund demonstrates what is possible when development finance, private investment, and deep market expertise come together with a shared ambition. By creating an investment grade pathway into emerging market climate finance, together, we are supporting climate solutions today while demonstrating a model that can unlock larger flows of capital in the future. That is the promise of blended finance – to turn investor interest into action and expand what the market can achieve,” said Lori Kerr, CEO of FinDev Canada.
“The successful first close of BOCAMF demonstrates what can be achieved when institutional investors, development finance institutions, and investment managers work together to design solutions around investors’ needs. By combining BlueOrchard’s 25-year track record in emerging markets private credit with an innovative blended finance structure, including direct corporate lending, we have delivered an investment solution that broadens institutional access to climate finance while meeting the investment and regulatory requirements of insurers and other long-term investors,” said Michael Wehrle, CEO of BlueOrchard.
Want to know who is raising, investing, and exiting in Africa? Get Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Access the Dealmaker’s Log here