Blended Finance Strategies and Implementation
BFA have produced blended finance feasibility studies that included the following analysis:
- Leveraging capacity under various blended finance models
- Review of host country resources available and suitable for blending purposes
- Affordability assessment for target market /community /service area
- Recommend best blended finance program for a particular country or region
- Presentation to all stakeholders including donor agencies, investors, local governments and intended beneficiaries
- Reconciliation report reflecting input from all stakeholders including any required revisions in the design and operation of a blended fund
- Final Report with recommended next steps and timeline
BFA’s approach to the creation of blended funds include the following steps:
- Consult with stakeholders throughout the design process
- Draft blended financial model and legal structure
- Establish an affordability assessment analysis
- Develop operational guidelines and underwriting criteria
- Establish an affordability assessment analysis
- Propose blended finance terms to investors and donors
- Close on blended finance investment agreements
At each step in the development, BFA reconciles the interests of all parties to reach a final program design that is practical, responsive to market conditions and stakeholders’ input, and ready for implementation.