Flexible financing

Our financing is provided on concessionary terms in the form of grants, loans and equity. These instruments can be used stand-alone or blended as relevant.


We strive to keep a high grant element across our portfolio while customising and adopting the mix of instruments to maximise impact. At the same time, careful consideration is taken not to distort the market conditions, in particular as concerns private sector projects.

A high grant element is consistent with the member countries’ no-return requirement in the aggregated portfolio; this feature, however, does not exclude return expectations in individual transactions. A high grant element is also consistent with the directions given to NDF to utilise the available financial resources in a highly catalytic way to develop and launch high impact climate projects and bring these to closing.

Climate Investor One is a good example of how blended finance instruments can be used to fast track renewable energy investments, in this case wind, solar and hydro, while bringing down the cost of clean energy for consumers in Africa, Asia and Latin America. Photo credit: Cleantech

Photo credit: Gaia Consulting Oy