British International Investment and BlueOrchard to unlock insurance capital to combat the climate emergency

• BII is looking to provide a substantial anchor investment to a new fund targeting over  USD 250m that satisfies UK Solvency II requirements placed on insurers
• BlueOrchard is one of the winners of BII’s mobilisation initiative to scale climate finance in emerging economies

London/Zurich, 10 November 2025: British International Investment (BII), the UK’s development finance institution and impact investor, and BlueOrchard Finance Ltd (BlueOrchard), a leading global impact investment manager, are partnering to create a new fund specifically designed to unlock insurance capital to combat the climate emergency in emerging markets.

BlueOrchard is one of the winners of a flagship BII mobilisation initiative, launched earlier this year, that called on the private investment community to help design products to increase the level of investment into climate-related projects in emerging markets.

BII ringfenced at least half of a £100 million mobilisation facility announced by Sir Keir Starmer, the UK Prime Minister at the UN General Assembly last year, for the innovative initiative. As part of the initiative, five organisations were shortlisted following a rigorous evaluation process led by a panel of industry experts. Winners were selected to receive more than £50 million in total.

BII is looking to provide a substantial anchor investment to the BlueOrchard Climate Action Mobilisation Fund (BOCAMF), which has a unique capital structure optimised to mobilise insurance investors at scale.

It includes junior and senior equity tranches (both anchored by BII) that enable the Senior Notes tranche to achieve an investment-grade rating and deliver fixed cash flows to insurance company investors.

BOCAMF will primarily aim to provide senior loans to banks, microfinance providers and other financial intermediaries that provide climate finance to SMEs in emerging markets.

BlueOrchard is working to secure investments from insurance providers in the Senior Notes tranche and other commercially and impact-minded investors in the senior and junior equity tranches with the aim of a final close targeting more than $250 million.

Leslie Maasdorp, the Chief Executive of BII, said: “The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale.

“Today’s announcement demonstrates how British development finance, working in partnership with a leading private institution, can forge a new path in getting capital to where it is needed most.”

Michael Wehrle, CEO of BlueOrchard, commented: “With an almost 25-year track record, BlueOrchard is a pioneer in impact investing across emerging markets. Meeting investors’ needs and enabling them to participate in impactful investments is one of our top priorities.

We are pleased to launch this innovative mandate, specifically designed to address the requirements of insurers and other institutional investors internationally. With the award of this exciting mandate, we have a unique opportunity to unlock new sources of private capital for emerging markets through innovative blended finance structures.”

The deal is subject to final BII legal and policy requirements being met.

-ENDS-

Media contacts: 

British International Investment: Andrew Murray-Watson | press@bii.co.uk

BlueOrchard: Tahmina Theis | tahmina.theis@blueorchard.com

About British International Investment

British International Investment is the UK’s development finance institution and impact investor. The organisation invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.

Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,600 businesses across 66 countries and total net assets of £9.87 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn, Bluesky and X.

About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneer of impact investing, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide.

Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. As of December 2024, BlueOrchard supported over 300 million people in emerging and frontier markets with its investments. For additional information, please visit: www.blueorchard.com.

Important information

Marketing material. Capital at risk.  

The information contained herein is the property of BlueOrchard Finance Limited and may not be further distributed or reproduced by the recipient without express written consent of BOF. The information in this document was produced by BlueOrchard Finance Ltd (“BOF”), a member of the Schroders Group. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. BOF has expressed its own views and opinions in this document and these may change without notice. Any mention of companies, products and managers is for illustrative purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument and should not be relied on for accounting, legal or tax advice. Information herein is believed to be reliable but BOF does not warrant its completeness or accuracy. The data contained in this document has been sourced by BOF and should be independently verified. Third party data is owned or licenced by the data provider and may not be reproduced, extracted, or used for any other purpose without the data provider’s consent. Neither BOF nor the data provider will have any liability in connection with the third party data. The terms of the third party’s specific disclaimers, if any, are set forth in the Important Information section at www.blueorchard.com/legal-documents/. This document may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.

Copyright © 2025, BlueOrchard Finance Ltd. All rights reserved.