Blended finance is central to Frontclear and defined as the strategic use of donor and development finance to mobilize private capital flows and expertise to emerging markets – a clear contribution to SDG 17.
Frontclear blends and leverages donor and development finance capital to support investments by our partner beneficiaries, combining the capital contributions of the three Frontier Clearing Funds (FCF): Subordinated, Junior and Senior. The use of repayable grants as risk capital in the Subordinated tranche, provides donor governments with a powerful ability to leverage official development aid (ODA) through blended finance and achieve a much larger and leveraged development impact outcome.
Frontclear has crowded-in several global banks active in emerging markets at the transaction level and further distributes risk on our guarantees in the private insurance market, having mobilized participation of several global insurance companies.
The FTAP Partnership Facility catalyzes additional finance and in-kind contributions like expertise, from private and not-for-profit sources.