• BlueOrchard increased its reach, and is now providing access to financial and related services to more than 39 million individuals with low-income in emerging and frontier markets as of June 2020.
  • The InsuResilience Investment Fund (IIF) Private Equity Sub-Fund held its final closing and is currently helping to protect more than 20 million vulnerable people from the effects of climate change.
  • The flagship BlueOrchard Microfinance Fund (BOMF) increased AuM to USD 2.46 billion and continues to deliver strong performance, investing more than USD 200 million in the past six months; as of June 2020, the fund is invested in 155 institutions across 49 countries in emerging and frontier markets.
  • BlueOrchard responds to the Covid-19 pandemic by investing through its BO UCITS EM Impact Bond Fund in excess of USD 12 million in Covid-19 bonds, including issuances from Guatemala, Paraguay, the African Development Bank and the IFC.
  • BlueOrchard meets challenges of the pandemic with increased client support, unprecedented industry collaboration and an expansion of critical technical assistance offerings.

Most recently, BlueOrchard announced the USD 80 million final closing of the InsuResilience Investment Fund (IIF) Private Equity Sub-Fund, a first of its kind initiative to improve access to climate insurance across the developing world. The fund has already made six investments across emerging and frontier markets, helping to protect more than 20 million vulnerable people from the effects of climate change. IIF is a prime example of a successful blended finance strategy and has attracted investments from established investors in both the public and private sectors, including the European Investment Bank and Soros Economic Development Fund.

BlueOrchard’s flagship fund, the BlueOrchard Microfinance Fund (BOMF), increased assets under management amid Covid-19 pandemic and reached USD 2.46 billion by the end of June. The fund delivered stable financial returns to investors throughout the first half year, while also achieving a positive social impact across eleven of the UN Sustainable Development Goals (SDGs). With a 20 year track record, BOMF is the world’s first and largest commercial microfinance fund dedicated to emerging and frontier markets. As of 30 June 2020, more than 27 million micro-entrepreneurs have been reached by microfinance institutions funded by BOMF, enabling them to create and grow income-generating activities and to break out of poverty. BOMF serves a borrower population that is 78% female, and 53% rural. BOMF, as well as BlueOrchard’s impact management system, have received independent verification for their alignment with the IFC-led Operating Principles for Impact Management (Principles). The Principles represent a standard for impact investing.

As an impact investor, BlueOrchard sees it as its responsibility to play an important role in reducing the impact of Covid-19 on the most vulnerable by channelling financial sources where it is needed most. The BlueOrchard UCITS Emerging Markets SDG Impact Bond Fund (IBF) has therefore invested into social bonds from the International Finance Corporation, an arm of the World Bank, the African Development Bank, issuances from Paraguay and Guatemala as part of a collaborative response to the Covid-19 pandemic. These bond issuances will support affected developing countries, with the main goal to maintain jobs, build out healthcare systems and reduce the economic impact of the pandemic. Together with other investment originators and fund managers in impact investing, BlueOrchard has furthermore signed a Memorandum of Understanding on debt refinancing coordination principles to support the sector during the Covid-19 pandemic. BlueOrchard has also expanded its Technical Assistance offering and developed a Covid-19 training program for microfinance institutions.

Outlook

As an impact investor, BlueOrchard will continue to focus on responding to the Covid-19 pandemic In the second half of 2020 through the provision of liquidity and by helping to build the resilience of financial institutions in emerging and frontier markets. In this context, BlueOrchard is collaborating with a number of potential investors, including Schroders, in the development of a new financing initiative to support partner institutions and their portfolio companies through the provision of emergency and longer-term liquidity with a view towards minimizing Covid-19 related disruption and setting a course to renewed growth.

Another priority for BlueOrchard will be addressing the funding gap for green infrastructure projects across emerging and frontier markets to mitigate climate change and contribute to the achievement of the SDGs.

Peter A. Fanconi, Chairman of the Board at BlueOrchard, said: “I am delighted that our teams successfully navigated the very challenging environment to deliver a strong first half of 2020. We feel honoured that investors and investees are turning to our 20 years of experience to drive impact and sustainable economic and social growth.”

Philipp Müller, Chief Executive Officer at BlueOrchard, said: “In the past half year we have shown how resilient we are as a business and as a team. I am very proud of the energy and dedication our staff has shown during the past six months. Building on our long tradition of staying close to investors, investees, and partners, we have adapted quickly during these extraordinary times, continuing to advance our mission.”

Maria Teresa Zappia, Chief Impact & Blended Finance Officer and Deputy CEO at BlueOrchard said: “Our results in the first half of 2020 reflect the progress in empowering people across the emerging world to grow out of poverty and resist the effects of climate change. In these uncertain times, we will continue to do our utmost to help the most vulnerable withstand and emerge even stronger from the crisis.”

-ends-

About BlueOrchard Finance Ltd

BlueOrchard is a leading global impact investment manager and a member of the Schroders group. The firm is dedicated to fostering inclusive and climate-smart growth in emerging and frontier markets, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. The firm has built a distinct track record in offering premium impact investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. BlueOrchard has invested to date more than USD 7bn for sophisticated global private and public clients, enabling tangible social and environmental impact. For additional information, please visit: www.blueorchard.com.

For further information, please contact:

Tahmina Theis
+41 22 596 47 69
tahmina.theis@blueorchard.com
www.blueorchard.com

Disclaimer:

The information in this document was produced by BlueOrchard Finance Ltd (“BOF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this document are those of BOF and its employees and are subject to change at any time without notice. BOF provides no guarantee with regard to the accuracy and completeness of the content in this document and BOF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by BOF in this document. This document may contain references or links to other documents and websites and BOF has not reviewed such other documents and websites and is not responsible in any way in relation to the content of such documents and websites.  

The information in this document is the sole property of BOF unless otherwise noted, and may not be reproduced in full or in part without the express prior written consent of BOF.

All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with BOF and its various managed funds. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital.

The materials provided in this document are for informational purposes only and nothing in this document can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this document of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this document constitute securities registered under the Securities Act of 1933 (of the United States of America) and BOF and its managed/advised funds are materially limited in their capacity to sell any financial products of any kind in the United States. No investment product referenced in this document may be publicly offered for sale in the United States and nothing in this document shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any BOF investment product.

The information provided in this document is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this document who wishes to engage with BOF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable. 

By no means is the information provided in this document aimed at persons who are residents of any country where the product mentioned herein is not registered or approved for sale or marketing or in which dissemination of such information is not permitted.

BOF disclaims all liability for any direct or indirect damages and/or costs that may arise from the use of (whether such use is proper or improper), or access to, this document (or the inability to access this document).

Copyright © 2020, BlueOrchard Finance Ltd. All rights reserved.