Emerging Market Climate Funds
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BlueOrchard Finance secured $250 million at the first close of the BlueOrchard Climate Action Mobilisation Fund, a climate-focused private-debt vehicle targeting emerging and frontier markets. Aviva Investors and Daido Life Insurance backed the fund with investment-grade notes, while additional commitments came from Schroders, British International Investment and FinDev Canada.
The fund uses a layered capital structure. Senior notes are designed to meet Solvency UK regulatory requirements for life insurers and provide senior loans to banks and microfinance providers that extend climate finance to small and medium-sized enterprises. The structure aims to create an investment-grade entry point into emerging-market climate finance, a segment that has historically struggled to attract large-scale private capital.
BlueOrchard's blended structure signals that tailoring fund design to institutional investors' regulatory needs could unlock significantly larger flows of climate finance to the regions that need it most.
