We are delighted to anchor the first close of the BlueOrchard Climate Action Mobilisation Fund at $250 million, marking an important step towards unlocking greater institutional investment at scale for climate action in emerging markets.
The fund is anchored by British International Investment (BII) and FinDev Canada and has attracted commitments from leading private-sector investors including Aviva Investors, Daido Life Insurance Company and Schroders.
BII played a catalytic role in creating the fund through its mobilisation initiative, launched in 2025 to call on the private investment community to help design products to increase the level of investment into climate-related projects in emerging markets. Working closely with BlueOrchard and prospective investors from the outset, we helped develop a structure designed to meet institutional investor requirements while delivering meaningful climate impact.
A key objective of the fund's design was to meet the regulatory requirements of life insurers, including those of UK insurers seeking Matching Adjustment 1eligible assets under Solvency UK, which sets out regulatory requirements for insurance firms and groups. By incorporating these investment requirements into the structure from the outset, this creates a practical route for insurers to invest more long-term capital in emerging-market climate finance while continuing to meet their regulatory obligations.
The fund's first close demonstrates growing investor confidence in climate investment opportunities across developing economies and the potential for innovative financial structures to mobilise capital where it is needed most.
The fund will provide senior loans to banks, microfinance providers and other financial institutions that channel climate finance to SMEs, while also lending directly to businesses across emerging markets.
Through this approach, it aims to mobilise long-term private capital towards climate mitigation and adaptation while delivering attractive risk-adjusted returns.
Leslie Maasdorp, CEO, British International Investment, said: "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."
Michael Wehrle, CEO, 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."
