Annual Reports: DFI Working Group on Blended Concessional Finance for Private Sector Projects

Blended concessional finance—combining concessional funds with Development Finance Institutions’ (DFIs) commercial financing—is used to unlock private investment for sustainable development. 

DFIs have collaborated to establish common standards, improve transparency, and enhance market trust through the DFI Enhanced Principles, adopted in 2017. These principles build on 2013 guidance and aim to maximize development impact, crowd in private capital, and ensure minimum concessionality without distorting markets. Since adoption, DFIs have implemented these principles across operations, adapting to COVID-19 and other global crises. 

This report updates DFI concessional finance data through 2021 and outlines 2022 progress in program expansion, innovation, governance improvements, and coordination efforts. It also encourages dialogue with other blended finance actors to promote best practices and ensure the effective use of concessional resources in private sector operations.