• British International Investment (BII) has committed USD 15 million. The Nordic Development Fund (NDF) has committed USD 13.5 million, with an additional USD 1 million as a grant for the fund’s Technical Assistance Facility. These new investments bring the total committed capital for the fund to over USD 90 million, close to its target size of USD 100 million. The final closing of the fund will be in the second half of 2024.
  • Building upon the achievements of its predecessor, the fund places significant emphasis on leveraging technology along the value chain to enhance the affordability and accessibility of climate insurance solutions.
  • The fund’s unique strategy has a successful track record of fostering climate change adaptation in regions most affected by climate change. It provides growth capital and market-rate returns for private investors and extends technical assistance and premium support to its partner companies. First-loss protection mitigates risks for private investors.

Zurich/London/Helsinki, 16 April 2024

BlueOrchard, a pioneering impact investment manager and member of the Schroders Group, is delighted to welcome British International Investment (BII), the UK’s development finance institution and impact investor, and the Nordic Development Fund (NDF) as new investors to the InsuResilience Investment Fund Private Equity II (IIF PE II). They join existing investors such as KfW, and Schroders in supporting the fund’s mission to build climate resilience in emerging markets. BII has supported two BlueOrchard funds, including an education finance fund for Africa and a Covid-19 recovery fund for MSMEs in emerging markets. The collaboration with NDF marks the beginning of a new partnership between NDF and BlueOrchard.

The IIF PE II fund is a joint initiative between BlueOrchard and KfW, the German development bank, acting on behalf of the German government under the InsuResilience Global Partnership.

Its primary objective is to protect vulnerable people and microentrepreneurs in emerging markets[1], from the impacts of climate change by providing access to climate insurance.

The fund is composed of a team of experienced investment and insurance sector specialists that actively collaborate with portfolio companies to achieve measurable impact and strong risk-adjusted returns.

Continuing the success of its predecessor, the fund works on establishing a robust ecosystem that facilitates access to climate insurance, ensuring the protection of vulnerable populations and small businesses.

The fund makes direct investments, focusing on investing in business models at the forefront of providing climate insurance solutions to underserved communities, with a particular emphasis on parametric climate insurance and insurtech. The fund has already made notable investments in several innovative companies in the climate insurance sector, including Newe, a data-driven innovative Brazilian specialty insurance company, Igloo one of the top insurtech companies in Southeast Asia, Pula, an agricultural insurance and technology company with an unparalleled outreach in Sub-Saharan Africa, and FinAGG, an Indian provider of cash flow financing solutions with embedded insurance coverage.

Felix Hermes, Head of Private Equity and Sustainable Infrastructure and Member of the Executive Management at BlueOrchard said: “Every year, natural disasters and climate-related events are impairing thousands of businesses and pushing millions of people into poverty. With climate change on the rise, this is a historic opportunity to develop and distribute relevant insurance solutions to those affected. In pursuit of this endeavor, we are focusing on companies that lead the development and use of relevant technologies, can expand rapidly, and exhibit high operational standards. With BII and NDF, we are thrilled to have strong partners join us in this endeavor. Together, we can make a real difference and provide much-needed support to those who need it the most.”

Jo Fry, Investment Director and Head of Intermediated Financial Services at BII commented: “Four out of five businesses in emerging economies have been impacted by the climate emergency, according to our annual Emerging Economies Climate Report this year. As the UK’s DFI, we are delighted to partner with BlueOrchard and join like-minded investors to support the development of innovative and improved climate insurance products and address market challenges. Climate insurance products should provide essential protection and enhance climate resilience of the most vulnerable and underserved groups of people and businesses.”

Satu Santala, Managing Director of NDF said: “Climate insurance can provide concrete solutions to the disastrous consequences of climate change and the people and businesses affected by it. We are proud as NDF to partner with BlueOrchard, invest in InsuResilience Investment Fund II and be part of making positive change in the regions where this is needed the most.”

For more information about the IIF PE II fund and BlueOrchard’s impact investing initiatives, please click here.

[1] Target countries of the funds are ODA recipient countries as defined by the OECD Development Assistance Committee provided that they have an appropriate investment environment.

 

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For further information, please contact:

For BlueOrchard Finance Ltd
Tahmina Theis, Head of Communications
+41 22 596 47 69
tahmina.theis@blueorchard.com

For NDF
Isabel Leroux, Program Manager
Phone: +358 10 618 002
E-mail: isabel.leroux@ndf.int

For BII
Nia Tam, Corporate Communications Officer
E-mail: press@bii.co.uk

About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 11 billion across more than 100 countries. As of December 2023, BlueOrchard has supported over 300 million people in emerging and frontier markets with its investments.. For additional information, please visit: www.blueorchard.com.

About NDF
The Nordic Development Fund (NDF) is the joint Nordic international finance institution of the five Nordic countries: Denmark, Finland, Iceland, Norway, and Sweden. NDF focuses on the nexus between climate change and development in lower-income countries and countries in fragile situations. Since the introduction of the climate mandate in 2009, NDF has built a track record of adding value by financing climate mitigation and adaptation projects in close interaction with its extensive network of strategic partners. Learn more: www.ndf.int.

About British International Investment
British International Investment (BII) is the UK’s development finance institution and a trusted investment partner to businesses in Africa, Asia, and the Caribbean. It invests to support the UK Government’s Clean Green Initiative and to create productive, sustainable, and inclusive economies in eligible markets. Between 2022 and 2026, at least 30 percent of BII’s total new commitments by value will be in climate finance. The company has investments in over 1,470 businesses in emerging economies across 65 countries and total assets of £8.1 billion. For further information about BII and its impactful initiatives, please visit: www.bii.co.uk | watch here.

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