tbli europe 2015 - development finance - patrick elmer

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  • Zurich, November 2015

    Investments for Development Swiss Innovation for a Sustainable World

  • Our aim is not just to keep people alive, but to give them a life- a decent life General Secretary Ban Ki-Moon 2015, September 28th UNO General Assembly


  • 500m people are smallholder farmers and need finance

    2.5bn people have no access to formal financial services

    70% of rural population has no access to piped water

    1.6bn people live in poor housing and 100m are homeless

    2.3bn people have no access to reliable electricity

    99% of all maternal deaths occur in developing countries 4

  • 3.9 trillion USD p.a. investment needs in SDG sectors

    Annual investment


    Annual investment


    Current annual





    Source: UNCTAD World Investment Report (2014) and United Nations

    (p.a. in USD) Current Investments



    Education 80bn 250bn

    Health 70bn 140bn Food Security & Agriculture 220bn 260bn

    Climate Change 190bn 550bn

    Infrastructure 870bn 1200bn

    Biodiversity 100bn


  • Enough money is available


  • Why are these funds not finding the way?

    Risk-return models Accessible and affordable

    basic needs Investment climate High intermediation costs Dormant capital pools Absorption capacity Some sectors sensitive to

    private sector involvement


  • BlueOrchard is a pioneer in microfinance and impact investing



    30Mio PEOPLE



  • BlueOrchard: local presence for global outreach

    Nairobi Kenya

    Lima Perou

    Phnom Penh Cambodge

    Genve Zurich


    Tbilissi Georgia


  • Microfinance Enhancement

    Facility (MEF)

    Customized mandate tailored to investors needs BlueOrchard Microfinance Fund

    (former Dexia Micro-Credit Fund)


    BlueOrchard Microfinance

    Securities 1 (BOMSI)


    Saint-Honor Microfinance Fund 2005

    BBVA Codespa Microfinanzas


    BlueOrchard Loans for

    Development 2006 (BOLD 2006)


    BlueOrchard Loans for

    Development 2007 (BOLD 2007)



    Microfinance Growth Fund



    Microfinance Initiative for Asia

    (MIFA) Debt Fund


    Regional Education Finance Fund

    for Africa (REFFA)


    Climate Insurance Fund (CIF)




  • Microfinance Initiative for

    Asia (MIFA)

  • 12

    Objectives - Provide finance to Tier 2 and 3 MFIs in Asia

    - Encourage financial institutions to lend to MSMEs

    - Includes green financing (in 2016)

    - Foster responsible finance principles in Asia and develop local capital markets

    Partners - Public sector: IFC, KfW, BMZ, EU

    - Private sector: BlueOrchard, institutional investors

    Benefits - Reputation & branding

    - Risk mitigation for private investors

    - Technical assistance (strenghten MFIs, meet development goals)

    Microfinance Initiative for Asia (MIFA)


  • 13

    Climate Insurance Fund (CIF)

  • 14

    Objectives - Develop Climate Insurance Markets for low-

    income households/MSMEs

    - Invest in insurance companies and financial institutions with innovative insurance products (extreme weather events, natural catastrophes, agricultural insurance)

    Partners - Public sector: KfW, BMZ

    - Private sector: BlueOrchard, Celsius Pro (TA Manager), investors (after pilot phase 2017)

    Benefits - Innovation (G7 initiative)

    - Risk mitigation for private investors

    - Technical assistance (activate market for weather insurance, product design)

    Climate Insurance Fund (CIF)


  • Regional Education Finance Fund for Africa (REFFA)


  • 16

    Objectives - Increase equal access to quality secondary,

    vocational and higher education

    - Enhance quality of education

    - Finance the education finance portfolio of selected African financial institutions (schools + students)

    Partners - Public sector: KfW, BMZ, Ofid (2016)

    - Private sector: BlueOrchard, family offices, foundations

    Benefits - Innovation (first ever education fund Africa)

    - Risk mitigation for private investors

    - Technical assistance (market development, reduce credit risk, meet development goals)

    Regional Education Finance Fund for Africa (REFFA)

    Regional Education Finance

    Fund for Africa (REFFA)

  • Structure Regional Education Finance Fund for Africa (REFFA)

    For investors meeting Luxemburg SICAV-SIF requirements

    Senior Tranche (Shares & Notes)

    Development Financial Institutions +

    Junior Tranche

    1% fixed return / unlimited maturity

    USD 28 Mil Q1 2016 (foundations, family offices, other BO private investors)

    USD 15 Mil USD 5 Mil committed by OFID

    USD 20 Mil paid in increase to USD 27 mil

    by end 2015 + Potential other Donors

    (*) Investors are eligible for complimentary dividends

    Target : 6m Libor + 1.5% 3 to 10 year maturity (*)

    1% fixed return / 20 year maturity

    Mezzanine Tranche

    Target: 6mth Libor + 3.0% / 9 year maturity

    Target: 6m Libor + 3.0%

    up to 12 year maturity (*)


  • Looking Ahead


    Innovative Blending

  • No offer or recommendation. The information and opinions contained in this publication constitute neither marketing material, nor any solicitation or recommendation, nor any offer to buy or sell any investment instruments or other services, or to engage in any transaction. This publication is not directed to persons in any jurisdiction where the provision of such information would not comply with applicable laws and regulations.

    No warranty. BlueOrchard Finance Ltd prepared this publication with the highest degree of care and professionalism and relied on sources believed to be accurate and up to date. Any information and opinions reflect the current judgement and knowledge of the authors and may change without notice. All content is intended for information purposes only and all information is provided without warranties of any kind, either expressed or implied, notably but not limited to warranties of merchantability and fitness for a particular purpose. The recipient of this material must make his/her own assessment about the accuracy, completeness and usefulness of an information provided herein.

    No liability. Unless otherwise indicated, all figures are unaudited and not guaranteed. All information are provided with the understanding that BlueOrchard Finance Ltd or any related party is not rendering legal, accounting or other professional advice or opinions on specific facts or matters and accordingly assume no liability whatsoever. Any action derived from this publication is always at the recipients own risk. BlueOrchard Finance Ltd or any related party shall not be liable for any direct, indirect, incidental, consequential or any other damages arising out of or in connection with the use of any opinion or information contained herein.

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    Copyright 2015, BlueOrchard Finance Ltd. All rights reserved.