OVERVIEW
Understanding the Ecosystem
Blended finance has a proven history in traditional infrastructure and energy sectors, where it successfully bridged funding gaps by combining public and private capital. Building on this established foundation, the mechanism has evolved beyond its conventional roots to address pressing social and environmental challenges, emerging as a key tool for achieving Sustainable Development Goals (SDGs) and supporting Micro, Small, and Medium Enterprises (MSMEs). This shift marks an important evolution from purely commercial objectives to a balanced approach that combines measurable impact with financial returns, particularly in Asian markets where mid-sized transactions are driving sustainable economic development.
ABOUT
Strengthening Blended Finance in Asia
While the global blended finance market shows robust growth, Asia's participation remains concentrated in a narrow band. This is due to three key barriers among mid to large philanthropic organisations: limited understanding of complex blended structures and their impact potential, insufficient expertise in selecting appropriate instruments, perceived risks, insufficient concessional capital and impact measurement frameworks, and the absence of a collaborative platform for knowledge exchange. These fundamental gaps hinder the development of a mature blended finance marketplace in the region.
To address these fundamental gaps, AVPN's Blended Finance initiative serves as a catalyst for ecosystem development, working to scale blended finance opportunities across Asia by equipping network members with the knowledge to structure deals effectively while facilitating strategic partnerships that mobilise capital more efficiently across the funding spectrum.
How We Do it
Our Approach
Capacity Building
We strengthen our members' capabilities by addressing knowledge gaps in structuring and executing blended finance transactions, ensuring they can effectively participate in complex deals.
Strategic Partnerships
We facilitate connections between concessional and commercial capital providers across the funding spectrum, creating powerful synergies that maximise impact potential.
Capital Mobilisation
We aim to catalyse various classes of capital by supporting our members in designing innovative blended finance vehicles and structures that align different investor requirements with impact objectives.
Knowledge Leadership
We advance the blended finance field by developing comprehensive thought leadership content and leading advocacy efforts that share practical insights and learnings from successful transactions.
