Blended finance

• 成果类型: Article
• 署名作者: Flammer, Caroline; Giroux, Thomas; Heal, Geoffrey M.
• 署名单位: Columbia University; Centre for Economic Policy Research - UK; European Corporate Governance Institute; Swiss Federal Institutes of Technology Domain; ETH Zurich
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104321
• 发表日期: 2026-09
• 页码: 104321
• 关键词: Blended finance; Catalytic capital; Development finance institutions (DFIs); Sustainable finance; Sustainable Development Goals (SDGs); Public-Private Partnerships; CONTRACTS

摘要

Blended finance-the use of public and philanthropic funding to crowd in private capital-has emerged as a potential tool for financing sustainable development. Yet little is known about the design of blended finance contracts. We develop a conceptual framework in which development finance institutions (DFIs) allocate concessional capital across projects to maximize societal impact while crowding in private investors. Our framework highlights a trade-off between sustainability impact and the amount of concessionality required to make projects commercially viable and characterizes how DFIs optimally combine different instruments, including concessional debt, junior equity tranches, and risk management facilities. We then provide empirical evidence on blended finance using deal-level data from a major DFI. Consistent with our conceptual framework, projects with higher anticipated sustainability impact receive greater concessionality. Moreover, concessionality is higher in countries with greater political risk and information asymmetries, and these projects are more likely to include risk management provisions. Our findings provide new evidence on how DFIs deploy catalytic capital to mobilize private investment in sustainable development.