• USD 250 million secured from private and public investors: The BlueOrchard Climate Action Mobilisation Fund SCA SICAV-RAIF (“BOCAMF” or “The Fund”) has achieved a first close of significant scale, with senior financing in the form of investment-grade notes provided by private-sector institutional investors Aviva Investors and Daido Life Insurance Company, as well as commitments from Schroders, British International Investment (BII) and FinDev Canada.
  • First blended finance fund in emerging markets to issue notes carrying an investment-grade rating from a leading international credit rating agency: This achievement reflects BlueOrchard Finance Ltd’s (“BlueOrchard”) 25 years of experience in emerging-market private credit and its extensive performance data across multiple market cycles.
  • Diversified private debt, including direct corporate lending: BOCAMF will provide senior loans to financial institutions that channel climate finance to SMEs, while also lending directly to companies. The strategy aims to combine attractive risk-adjusted returns with measurable climate impact.

BlueOrchard, a leading global impact investment manager and member of the Schroders Group, announces the successful first close of the BlueOrchard Climate Action Mobilisation Fund. With USD 250 million in commitments secured, the Fund has achieved a substantial first close, demonstrating BlueOrchard’s ability to mobilise long-term institutional capital at scale for climate-related investments in emerging and frontier markets, where investment needs remain greatest. It also marks an important milestone in the development of BlueOrchard’s emerging markets direct lending capabilities.

Co-created with life insurers

Central to BOCAMF’s development was the co-creation process with private-sector investors and development finance partners. From the outset, the Fund was designed to incorporate the regulatory, capital and investment requirements that determine their ability to participate in such transactions. The resulting blended finance transaction combines investment-grade-rated senior notes with senior and junior equity anchored by BII and FinDev Canada. BII played a catalytic role in the Fund’s development through its mobilisation facility, which was established to identify and scale innovative investment structures capable of attracting significantly greater volumes of private capital into climate-related investments across emerging markets.

A key objective in designing the senior notes was to meet the regulatory requirements of life insurers, including those of UK insurers seeking Matching Adjustment[1] eligible assets under Solvency UK. By embedding these requirements directly into the Fund’s design, the structure creates a route for institutional investors to deploy capital within their existing regulatory frameworks.

Public investment-grade rating for senior notes

BlueOrchard’s 25 years of experience in emerging markets private credit provided an extensive dataset of observed portfolio performance for the rating analysis, helping BOCAMF to become the first blended finance fund focused on emerging and frontier markets to issue notes with a publicly available investment-grade rating assigned by a leading international credit rating agency under its closed-end funds methodology. The rating process was made possible by a grant from the Korea International Cooperation Agency (KOICA), provided as part of its objectives to mobilise private capital for development.

Munawer Shafi, Head of Structured & Private Debt, Aviva Investors, said: “Innovative structures such as this blended finance product can help broaden access to a greater range of asset classes, enabling Matching Adjustment insurers to diversify their portfolios while remaining within regulatory parameters and being able to invest into opportunities that can support climate solutions in emerging and developing markets.”

Masaki Sano, General Manager of Credit Investment Department, Daido Life, said: “We are pleased to participate in BOCAMF, an innovative investment solution that supports climate action across emerging and frontier markets. We believe this initiative represents an attractive investment opportunity that seeks to deliver both financial returns and measurable climate impact. Together with BlueOrchard and fellow investors, we look forward to supporting efforts that address the global challenge of climate change and contribute to sustainable economic development.”

Michael Wehrle, CEO of BlueOrchard, said: “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.”

Leslie Maasdorp, CEO, British International Investment, said: “BOCAMF was one of the winners of BII’s flagship Climate Action Mobilisation Initiative, launched in 2025 to develop investment solutions capable of attracting greater private capital into climate opportunities in emerging markets. This first close is an important proof point for the continued evolution of blended finance as a powerful mobilisation tool. By demonstrating that institutional investor requirements can be met alongside meaningful climate impact, the Fund helps create a pathway for greater commercial investment into emerging markets. Each successful vehicle strengthens the market, builds investor confidence and makes it easier to replicate and scale future structures, ultimately mobilising more private capital towards climate action where it is needed most.”

Lori Kerr, CEO, FinDev Canada, said: “The scale of the climate challenge demands that we find new ways to mobilize 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.”

Global climate finance needs are estimated to reach approximately USD 9 trillion annually by 2030, according to the Climate Policy Initiative[2], yet available capital remains only a fraction of what is required. BOCAMF has been designed to help bridge this financing gap by channelling long-term institutional capital into climate-related investments. Its strategy focuses on senior loans to banks, microfinance providers and other financial institutions that channel climate finance to SMEs, complemented by an allocation to direct corporate lending. Through this diversified approach, the Fund targets attractive risk-adjusted returns while supporting climate mitigation and adaptation in emerging and frontier markets.

–end–

 

For more information please contact:

Tahmina Theis, Head of Communications
+41 22 59 64 769
tahmina.theis@blueorchard.com

 

About BlueOrchard Finance Ltd

BlueOrchard is a leading global impact investment manager with a long-standing track record of delivering financial returns alongside measurable social and environmental outcomes. Established in 2001 as part of a United Nations initiative, the firm has been a pioneer in impact investing, with a particular focus on emerging and frontier markets.

With more than two decades of experience, global reach and deep local expertise, BlueOrchard offers a broad range of impact investment strategies designed to meet the needs of institutional, private, and public investors. These solutions provide access to high-growth markets while supporting job creation and sustainable economic development. The firm has invested billions of dollars across more than 100 countries, benefiting millions of underserved micro-, small- and mid-sized enterprises.

As part of Schroders, a global asset manager with a heritage spanning over 200 years, BlueOrchard combines specialist impact investing capabilities with institutional-grade infrastructure and governance. For more information, please visit: www.blueorchard.com

 

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[1] The Matching Adjustment is a regulatory mechanism under the Solvency UK framework that allows insurers with the relevant permission to adjust the risk-free discount rate used to value certain insurance liabilities to reflect a proportion of the spread expected to be earned on assets whose cash flows closely match those liabilities. Its use is subject to applicable Prudential Regulation Authority requirements relating to eligibility, risk management and ongoing compliance.

[2] Climate Policy Initiative, Global Landscape of Climate Finance 2023