Blended Concessional Finance : The Rise of Returnable Capital Contributions

In new and challenging markets, blended concessional finance - the combining of concessional funds with other types of finance, on commercial terms - is increasingly used to mobilize capital and accelerate high impact private sector investments. Ho...

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Main Authors: Karlin, Arthur, Sierra-Escalante, Kruskaia
Format: Brief
Language:English
Published: International Finance Corporation, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/347971573041074050/Blended-Concessional-Finance-The-Rise-of-Returnable-Capital-Contributions
http://hdl.handle.net/10986/32653
id okr-10986-32653
recordtype oai_dc
spelling okr-10986-326532021-05-25T10:54:36Z Blended Concessional Finance : The Rise of Returnable Capital Contributions Karlin, Arthur Sierra-Escalante, Kruskaia CONCESSIONAL FINANCE BLENDED FINANCE RETURNABLE CAPITAL INFRASTRUCTURE INVESTMENT EMERGING MARKET ECONOMIES SENIOR DEBT GRANTS REFLOWS OFFICIAL DEVELOPMENT ASSISTANCE In new and challenging markets, blended concessional finance - the combining of concessional funds with other types of finance, on commercial terms - is increasingly used to mobilize capital and accelerate high impact private sector investments. However, a relatively new approach for the provision of concessional capital for use by development finance institutions is emerging - the returnable capital model. With this new model, principal, interest, and other amounts are repaid to the original provider of funds (usually a government) on a regular basis. Because this can reduce the impact on donor government budgets, more government funds can become available for collaboration with the private sector. This note explores the effects of this new model on incentives, accounting, resource management, and reporting. 2019-11-20T21:45:06Z 2019-11-20T21:45:06Z 2019-09 Brief http://documents.worldbank.org/curated/en/347971573041074050/Blended-Concessional-Finance-The-Rise-of-Returnable-Capital-Contributions http://hdl.handle.net/10986/32653 English EMCompass,no. 72; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Brief
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CONCESSIONAL FINANCE
BLENDED FINANCE
RETURNABLE CAPITAL
INFRASTRUCTURE INVESTMENT
EMERGING MARKET ECONOMIES
SENIOR DEBT
GRANTS
REFLOWS
OFFICIAL DEVELOPMENT ASSISTANCE
spellingShingle CONCESSIONAL FINANCE
BLENDED FINANCE
RETURNABLE CAPITAL
INFRASTRUCTURE INVESTMENT
EMERGING MARKET ECONOMIES
SENIOR DEBT
GRANTS
REFLOWS
OFFICIAL DEVELOPMENT ASSISTANCE
Karlin, Arthur
Sierra-Escalante, Kruskaia
Blended Concessional Finance : The Rise of Returnable Capital Contributions
relation EMCompass,no. 72;
description In new and challenging markets, blended concessional finance - the combining of concessional funds with other types of finance, on commercial terms - is increasingly used to mobilize capital and accelerate high impact private sector investments. However, a relatively new approach for the provision of concessional capital for use by development finance institutions is emerging - the returnable capital model. With this new model, principal, interest, and other amounts are repaid to the original provider of funds (usually a government) on a regular basis. Because this can reduce the impact on donor government budgets, more government funds can become available for collaboration with the private sector. This note explores the effects of this new model on incentives, accounting, resource management, and reporting.
format Brief
author Karlin, Arthur
Sierra-Escalante, Kruskaia
author_facet Karlin, Arthur
Sierra-Escalante, Kruskaia
author_sort Karlin, Arthur
title Blended Concessional Finance : The Rise of Returnable Capital Contributions
title_short Blended Concessional Finance : The Rise of Returnable Capital Contributions
title_full Blended Concessional Finance : The Rise of Returnable Capital Contributions
title_fullStr Blended Concessional Finance : The Rise of Returnable Capital Contributions
title_full_unstemmed Blended Concessional Finance : The Rise of Returnable Capital Contributions
title_sort blended concessional finance : the rise of returnable capital contributions
publisher International Finance Corporation, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/347971573041074050/Blended-Concessional-Finance-The-Rise-of-Returnable-Capital-Contributions
http://hdl.handle.net/10986/32653
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