MOBILIST Global’s Post

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A large and persistent financing gap means that EMDEs cannot come close to meeting the SDGs or addressing their climate finance needs without attracting much greater private-sector investment. For this reason, calls and recommendations for MDB reform by the G20 and others include greater use of instruments more effective at mobilising private capital. MOBILIST’s recently published Research Note explains that guarantees can outperform the average mobilisation ratios of instruments like loans by 5 to 6 times. https://lnkd.in/gQ2-yvRj For example, as illustrated below, The Blended Finance Taskforce found that guarantees can mobilise $1.5 of private capital for every dollar of MDB capital, compared to only 25 cents mobilised by loans. The note also draws on MOBILIST’s recent investment in the Green Guarantee Company, the first specialist guarantor for emerging market climate adaptation and mitigation projects. GGC is expected to realise even higher mobilisation rates of 10x by using guarantees to improve the credit ratings of emerging market assets to investment grade. https://lnkd.in/d9isspig

George Carivalis

Team Leader @ FCDO | Sustainable Investment

5mo

In mobilising the massive investment needed in the global south, the combination of credit guarantees and securitization will be transformative.

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