The recent UNCDF report ‘Blended Finance in the Least Developed Countries’ addresses questions like: Can blended finance be part of the solution in getting more finance to where it is needed most? What challenges and risks should be considered and mitigated? How can blended finance be effectively and efficiently deployed, so that projects support national ownership and generate additionality? Can blended operations in LDCs crowd in investors, especially domestic investors, while also creating demonstration effects that support commercial replication?
The report also includes a case study on Myanmar, where LIFT, a multi-donor trust fund, and TCX launched a joint blended facility that allows international investors to lend to Myanmar MFIs in kyat at the cap rates, while still realizing their targeted commercial returns in US dollars.
Please find the complete report here. The case study on Myanmar starts on page 73.