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Catalytic capital and blended finance
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Case studies & examples

Clean energy & biofuels

Similarities of clean energy: high CapEx, entrenched incumbents who employ a lot of people and are geographically dispersed with lots of political power, uninterested consumers with niche of passionate adopters, lack of access

Habitat for Humanity has done this:
Examples from GIIN, MacArthur, Gates, Rockefeller

INVESTOR CONTRIBUTION IN PRACTICE Launched in 2000, the John D. and Catherine T. MacArthur Foundation’s Window of Opportunity initiative sought to preserve and improve the supply of affordable housing in the US by addressing a critical business model challenge faced by nonprofit affordable housing developers: the need for enterprise-level (as opposed to project-level) financing to allow for more agility in the competition to acquire and execute affordable housing properties. These nonprofit developers were often unable to compete with market-rate developers due to the significant time and cost of assembling project-based funding from multiple sources, often including government subsidies. By filling a financing gap for organizations with limited ability to raise equity, MacArthur’s investments of more than $150 million over a period of about 15 years enabled dozens of nonprofit affordable housing organizations and supporting blended funds to attract more than $9 billion of additional permanent capital from conventional lenders, improve their internal capacity, expand into new markets, better execute their overall mission, and preserve more than 150,000 units of affordable housing.77, 78
In a similar vein GuarantCo, which is backed by aid agencies, helps make investments in infrastructure in poor countries bankable by taking on the most nettlesome risks. For every dollar it invests it has attracted $13.50 in private money. In 2014 it helped Mobilink, a telecoms firm, expand into remote parts of Pakistan by guaranteeing part of an Islamic bond denominated in Pakistani rupees. The Gates Foundation, too, has put aside $1 billion to provide loan subsidies, guarantees and other sweeteners for twitchy private creditors


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