A $100 million “blended finance” sustainable goals initiative described as a “one of the first of its kind” has attracted key backing.
British International Investment, the development financial institution of the UK government, and the US International Development Finance Corporation have both agreed to be anchor investors in the SDG Outcomes initiative that includes investing alongside private investors including Legatum, family offices such as the Tsao Family Office and other high net worth individuals.
UBS Optimus Foundation, an arm of UBS bank and Bridges Outcomes Partnerships, a not-for-profit focused on the wellbeing of young adults, developed the initiative.
The initiative will work help deliver projects with a focus in Africa and Asia, as well as other low- and middle-income countries around the world.
SDG Outcomes uses an innovative blended finance structure, whereby UBS Optimus, funded by donations from over 30 UBS clients, says it is providing 20 per cent first-loss capital to “unlock additional impact-driven capital”.
Any returns for the philanthropic funding will be recycled into future projects.
Maya Ziswiler, CEO of the UBS Optimus Foundation, says it is “one of the first of its kind to provide the scale so desperately needed to provide real impact”.
“By creating an investible solution, we can help our clients and partners to mobilise all forms of capital – from philanthropic, through to public and private investors motivated by both financial and non-financial returns on their investments,” she added.
In 2021, the Swiss State Secretariate for Economic Affairs, SECO, teamed up with UBS Optimus Foundation and others to launch the SDG Impact Finance Initiative, or SIFI.
SIFI is a public-private partnership that aims to raise up $1 billion for social and environmental projects in developing countries. It also aims to strengthen the market and regulatory infrastructure in impact finance by standardising legal frameworks.
Shafi Musaddique is a news editor at Alliance magazine.
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