The Why and How of Blended Finance

This paper from the IFC delves into the rationale and mechanisms of blended finance, explaining how concessional resources are strategically used to mitigate investment risks and attract private sector capital for pioneering development projects. It outlines IFC's approach to blended finance, emphasizing effectiveness, efficiency, and transparency in delivering development impact. The authors discuss the importance of addressing market barriers, creating new markets, and adhering to high standards in governance and environmental impact.