UBS Raises $100 Million for SDG-Focused Blended Finance Fund – ESG Today

UBS introduced that the SDG Outcomes Fund, developed by its philanthropy-focused platform UBS Optimus Basis and influence specialist Bridges Outcomes Partnerships (BOP) has raised $100 million in commitments at its closing shut, reaching the preliminary fundraising goal for the blended finance fund.

The ultimate shut of the fund included an $18 million anchor dedication from the European Funding Financial institution (EIB), by funding from the European Fee through the ACP Belief Fund.

Ambroise Fayolle, Vice-President of the EIB, mentioned:

“Our dedication is extra than simply financing – it’s investing in a future the place each funding delivers tangible, measured influence. This fund is already bringing developments in well being, schooling, and local weather motion to weak communities world wide, with a powerful concentrate on Africa and rising markets.”

Labeled as Article 9 beneath the EU’s SFDR regulation, the SDG Outcomes Fund goals to speed up progress in direction of the UN Sustainable Growth Objectives (SGDs) by investing in outcomes-based financing applications in low- and middle-income international locations, with a concentrate on well being, schooling, ladies’s financial empowerment, and the surroundings.

Blended finance brings collectively public or philanthropic capital and personal funding by a standard funding construction, enabling buyers to put money into sure sorts of investments which have excessive perceived danger profiles, equivalent to new local weather mitigation-related applied sciences.

Underneath the partnership between UBS Optimus Basis and Bridges, UBS gives first-loss capital, and BOP acts as a portfolio and supply supervisor, and brings collectively companions to seek out revolutionary options that may obtain measurable influence for every venture. The fund gives up-front prices for the applications, with different funders, equivalent to native or nationwide governments, donors, foundations, corporates, NGOs or people, solely paying if profitable, verifiable outcomes are achieved.

Tom Corridor, World Head of Social Impression and Philanthropy and CEO, UBS Optimus Basis Community, mentioned:

“The SDG Outcomes Fund is a ground-breaking initiative that reveals how completely different types of capital can come collectively to ship outcomes for individuals who want it most. Reaching the USD 100 million milestone demonstrates the highly effective potential of outcomes-based funding applications and their position in shaping future influence funding fashions.”

UBS famous that the fund is the primary particularly designed to help outcomes-based applications in low- and middle-income international locations. To this point, the fund has already resulted in $13.5 million in funds for social and environmental outcomes.

Mila Lukic OBE, CEO of Bridges Outcomes Partnerships, mentioned:

“The outcomes achieved by the SDG Outcomes Fund already present that by bringing collectively a variety of companions, and critically, by studying from the info about what works greatest and adjusting our applications accordingly, we are able to obtain higher outcomes for people and higher worth for our funders. This extra versatile, extra collaborative method has already helped to enhance the lives of lots of of hundreds of individuals, and we’re massively grateful to all our buyers for supporting this fund, which can guarantee impact-seeking capital catalyzes high-impact applications in a number of the areas of biggest want.”