British International Investment (BII) and BlueOrchard Finance have announced a strategic partnership to launch an innovative fund designed to mobilize insurance capital for addressing climate challenges in emerging markets. The initiative builds on BII’s mobilization programme introduced earlier this year, which invited private investors to create solutions that accelerate climate finance in developing economies.
BlueOrchard emerged as one of the winners of this competitive process, which involved a rigorous evaluation by a panel of industry experts. Under the programme, BII committed at least half of a £100 million mobilization facility to support selected proposals, with five organisations shortlisted.
As part of this collaboration, BII is expected to make a substantial anchor investment in the BlueOrchard Climate Action Mobilisation Fund (BOCAMF). The fund employs a blended capital structure specifically designed to attract insurance investors at scale. It features both junior and senior equity tranches, anchored by BII, enabling the senior notes to achieve an investment-grade rating and deliver fixed returns to insurance company investors.
BOCAMF’s primary focus will be on providing senior loans to banks, microfinance institutions, and other financial intermediaries that channel climate finance to small and medium-sized enterprises (SMEs) in emerging markets. This approach aims to strengthen local financial ecosystems while driving sustainable climate solutions.
BlueOrchard is now actively seeking commitments from insurance companies for the senior notes, as well as from commercial and impact-driven investors for the senior and junior equity tranches. The fund is targeting a final close of over $250 million, marking a significant step toward unlocking private capital for climate resilience.
Commenting on the launch, Leslie Maasdorp, Chief Executive of BII, stated:
The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilize private capital at scale. Today’s announcement demonstrates how British development finance, working in partnership with a leading private institution, can forge a new path in getting capital to where it is needed most.
Michael Wehrle, CEO of BlueOrchard, added:
With an almost 25-year track record, BlueOrchard is a pioneer in impact investing across emerging markets. Meeting investors’ needs and enabling them to participate in impactful investments is one of our top priorities. We are pleased to launch this innovative mandate, specifically designed to address the requirements of insurers and other institutional investors internationally. With the award of this exciting mandate, we have a unique opportunity to unlock new sources of private capital for emerging markets through innovative blended finance structures.
