BOSAF focuses on climate change mitigation and the long-term economic development of emerging and frontier markets. The Fund will provide debt financing to projects with demonstrable social, environmental, and economic impact alongside attractive returns.
Infrastructure plays a vital role for social and economic development, but a significant gap remains for the financing of mid-sized projects in key emerging and frontier markets. BOSAF will work to close that gap with a focus on investments in projects which, despite not being massive in scale, have the potential to make an impact on communities for generations to come. The Fund’s clear and measurable impact targets are aligned with the UN’s Sustainable Development Goals (SDGs).
BOSAF is launching its first close with key support from the Schroders Group along with prominent European investors, including strong support from Nordic investors such as Finland’s Church Pension Fund and YLE, Pension Fund of Finnish Broadcasting Company. BOSAF is available to institutional investors across different jurisdictions.
The Fund will be managed by an experienced team, with a long track record and network in sustainable infrastructure investing across the emerging world. Combined with BlueOrchard’s 20-years of impact expertise, and local presence in emerging and frontier markets, the team is best positioned to source, execute, and deliver on the Fund’s objectives. The Fund’s impact and sustainability objectives will be overseen by BlueOrchard’s dedicated, in-house team of experts.
Felix Hermes, Head of Private Equity and Sustainable Infrastructure at BlueOrchard, said: “Around 75% of the UN SDGs investment gap is made up of critical infrastructure projects in growth markets. We are excited to contribute to closing this gap by leveraging BlueOrchard’s 20-year history as a leader in emerging markets impact finance. The strong support from Nordic investors in this endeavour is great news.”
Carolina Minio-Paluello, Global Head of Product, Solution and Quant, Schroders, commented: “We have identified climate change as one of the main global threats and, as investors, we possess the ability to deliver change in the world by directing capital into areas that generate positive impacts. This fund, with its focus on providing debt financing to projects which aim to support social, environmental and economic impacts, allows us to deliver on this key objective.”
Ira van der Pals, CIO at Finland’s Church Pension Fund, said: “There is urgent need to accelerate the transition towards a low carbon economy. With a net zero target set by 2035, we have a strong focus on increasing investments in climate solutions. We are very pleased that we have found an experienced partner in BlueOrchard to address unmet climate finance needs in particularly those regions of the world that are the most vulnerable.”
Topi Piela CEO of YLE, Pension Fund of Finnish Broadcasting Company, said: “We strongly believe in the concept of profit with a purpose. We are proud to partner up with the leader in this field, in order to invest with a measurable impact and to address crucial climate-related investment gaps in emerging markets.”
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About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, 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. To date, BlueOrchard has invested over USD 8bn across more than 90 countries. Over 216 million poor and vulnerable people in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of March 2021. For additional information, please visit: www.blueorchard.com.
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