Impact investment manager BlueOrchard announced today the $150 million final close of the InsuResilience Investment Fund (IIF) Debt Sub-fund, aimed at improving access to climate insurance across the developing world.
The IIF operates under the InsuResilience Global Partnership, a G20/V20 initiative designed to protect 500 million people in vulnerable communities in developing countries against the impacts of climate change. The fund was initiated by KfW, the German Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), and is managed by BlueOrchard.
According to BlueOrchard, the fund lends to financial institutions and aggregators in order to facilitate adaptation to climate change by improving access to, and use of, climate insurance solutions in developing countries. To date, the Fund has made 14 investments across emerging markets, helping to protect 25 million people. BlueOrchard stated that IIF’s goal is to reach between 90 and 145 million beneficiaries by 2025.
Philipp Müller, Chief Executive Officer at BlueOrchard, said:
“The InsuResilience Investment Fund is making a major contribution to improving the resilience of poor and vulnerable households, farmers and MSMEs in developing countries to the effects of climate change. We are proud to be managing this fund and we thank our investors for their trust and support.”
BlueOrchard stated that IIF is a prime example of a successful blended finance strategy. The fund is structured as a public private partnership and has, building on the BMZ junior funding, attracted investments from both public and private sectors investors, including the European Investment Bank (EIB), DFC (U.S. International Development Finance Corporation), Bank of America, Calvert Impact Capital and Ceniarth LLC.
Ambroise Fayolle, European Investment Bank Vice President, said:
“The European Investment Bank is pleased to support BlueOrchard’s pioneering climate insurance initiative to contribute to protecting millions of people in vulnerable communities from a changing and more extreme climate. The InsuResilience Investment Fund demonstrates how global financial partners can work together to accelerate climate action and deliver on political priorities outlined by the G20.”
Dan Letendre, Managing Director for Environmental, Social and Governance at Bank of America, added:
“As part of our Blended Finance Catalyst Pool and our broader sustainable finance initiatives, this investment is another demonstration of how we are helping to advance the United Nations Sustainable Development Goals, while driving innovative financial solutions to address global issues like climate change. The positive impacts of pairing climate insurance with these loans will help provide borrowers with financial stability and resilience as well as better access to funding during climate-related events.”