British International Investment (BII), the UK’s development finance institution and BlueOrchard Finance, an impact investment manager, are partnering to create a new fund designed to unlock insurance capital to combat the climate emergency in emerging markets.
BII ringfenced at least half of a £100m mobilisation facility announced by Keir Starmer, the UK prime minister at the UN General Assembly last year, for the initiative.
As part of the initiative, five organisations were shortlisted following a rigorous evaluation process led by a panel of industry experts.
Winners were selected to receive more than £50m in total.
BII is looking to provide an anchor investment to the BlueOrchard Climate Action Mobilisation Fund, which has a capital structure to mobilise insurance investors at scale.
It includes junior and senior equity tranches, both anchored by BII, that enable the “senior notes tranche” to achieve an investment-grade rating and deliver fixed cash flows to insurance company investors.
BlueOrchard is working to secure investments from insurance providers in the senior notes tranche and other commercially and impact-minded investors in the senior and junior equity tranches with the aim of a final close targeting more than £190m.
“The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale,” said Leslie Maasdorp, the chief executive of BII.
Comments