Catalytic financing for
launch and scale
To drive a change, and to address the lack of interest from risk-averse international private financing, it is important to develop financing mechanisms which address the existing gaps. These mechanisms need to creatively address deficits and needs in financing packages of both public and private financiers.
What is the objective?
We strive to enable and catalyse financing from the public and private sectors for climate and development impact. By increasing the number of projects that receive scale-up financing and improving leverage ratios to create a larger volume of climate finance, we facilitate the more widespread creation of climate and development solutions capable of delivering inclusive and climate-friendly development.
As a concessionary financier, we can add value to projects by mobilising co-financing from investors with both concessionary and non-concessionary mandates. The market demand for concessionary and risk-tolerant capital provides opportunities for us to distinguish ourselves within the climate finance spectrum. We are well-positioned to match optimally existing market demand with relevant financing instruments and institutional support. Our possibilities to customise solutions creatively to address deficits and needs in financing packages, constitutes a comparative edge and a value adding feature.
The catalytic impact of the waste management project in Mozambique has been transformational for the entire country. Not only was the proposal to the NAMA Facility approved, bringing the promise of an additional EUR 18 million and financial leverage to the sector, but new waste regulations were approved and the political will towards a circular economy became front page national news. The waste management sector will be radically changed in the coming years, bringing down greenhouse gas production and promoting the circular economy. Photo: NDF
NDF seeks to:
create financing arrangements with various types of strategic partners, including Nordic financing organisations, and to provide financing tailored to specific situations and needs;
co-finance projects in the public sector through grants and concessionary loans with the goal of validating the project’s concept and leveraging financing from other sources;
take higher-risk positions in the private sector to improve investment risk profiles and to catalyse financing from other sources;
act as a matchmaker and first mover to help raise further financing once a project is demonstrably viable and scalable.
Photo credit: Miguel Oliveira / EEP Africa