Blended Finance

Risk-sharing mechanisms can help improve the risk-return profile of your investments. 

Adding a layer of sponsor capital inherently improves the risk-return profile of funds, which allows Blended Finance to fit into institutional investors’ strategic asset allocation. 

Blended finance funds help scale impact because they rely on established, repeatable structures rather than one-off project-by-project arrangements. Thanks to clearer frameworks, standardized documentation, and consistent reporting, these funds are easier to replicate across markets.  

Credibility comes from the combination of strong partners: Development Finance Institutions and Multilateral Development Banks as well as our own structuring and investment expertise.

Together, we can expand the pipeline of sustainable assets in target countries, deepen financial capital markets and support long-term development impact.

Blended Finance is a financing approach that combines public or concessional capital with private capital to help mobilize investment toward sustainable development and climate-related projects.

From a market perspective, it is increasingly seen as a way to address financing gaps in sectors and geographies that remain underfunded. At Amundi, this approach can help unlock capital for opportunities where risk mitigation is needed to attract institutional investors.

Market needs are growing significantly, particularly in emerging markets, climate infrastructure, and other areas linked to the sustainable transition.
At the same time, private capital often requires structures that better align risk and return. Blended Finance responds to this challenge by creating investment solutions that can support both capital mobilization and development impact. For Amundi, this makes it a relevant tool to help clients access opportunities while contributing to long-term sustainable outcomes.

In the market, Blended Finance structures typically use mechanisms such as first-loss capital, guarantees, junior tranches, or other risk-sharing tools to improve the attractiveness of an investment.

These structures can help reduce perceived risk for private investors. At Amundi, such solutions may be used to help bridge the gap between impact objectives and institutional capital deployment.

For investors, Blended Finance can offer:

• Improved risk-return profile
• Greater diversification across issuers, sectors, and geographies
• Access to new market opportunities
• Exposure to emerging markets and climate transition themes
• Alignment with ESG and impact objectives

In the broader market, these features are increasingly attracting institutional interest. At Amundi, they are seen as key levers to help clients invest at scale in sustainable solutions.

In today’s market, Blended Finance is becoming an important part of the conversation around sustainable investment and capital mobilization.
As an early and committed leader in responsible investing, Amundi can help investors access structured solutions designed to support sustainable development, while seeking to improve the investment profile. This includes mobilizing market expertise to help bridge financing gaps in areas such as emerging markets, climate infrastructure, and other transition themes.

Blended finance is the structured use of catalytic capital (capital that accepts higher risk, lower returns, or longer tenors to mobilise additional private investment) from public, philanthropic, or other development-oriented sources alongside private capital to finance public-purpose outcomes.