Blended Finance Facility (BFF)
Publication Date:
Jan 02, 2024
Region:
The Blended Finance Facility (BFF) combines IDA PSW resources with IFC investments to support high-impact sectors like SMEs, agribusiness, health, education, climate, and infrastructure.
It mitigates financial risks to unlock private sector opportunities, especially in pioneering or high-risk markets. BFF builds on IFC’s existing blended finance platforms and extends into new sectors. It enables IFC to use senior loans, equity, guarantees, and other instruments to finance projects not yet commercially viable but with strong development potential.
It also offers risk mitigation tools such as subordination and long tenors to support greenfield investments in IDA-eligible countries. Losses are capped at the PSW allocation.
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