Apply for SDG Impact Finance Initiative Design Funding Window

Deadline: 15-Mar-2024

Applications are now open for the SDG Impact Finance Initiative to accelerate advancements in the impact investing market by supporting the launch of innovative solutions that address market failures, deploy financial products that are under-supplied or supplied at insufficient volumes, and mobilize funding into new sectors and regions.

The mission of the SDG Impact Finance Initiative is to advance measurable progress in developing countries towards the achievement of the UN Sustainable Development Goals (UN SDGs) by mobilizing new capital through innovative finance solutions and collaboration between public and private partners. The goal is to unlock up to CHF 1 billion in capital towards the SDGs.

It aims to achieve three key objectives:

• Support the design and development of innovative impact finance solutions;
• Scale impact investing solutions by mobilizing private capital at scale; and
• Strengthen the impact investing ecosystem, improve overall frameworks, and promote quality impact management practices to enhance impact investment flows.

Under this third call for proposals, with support from Convergence, the Initiative will award grant funding for feasibility studies, proof of concept activities and expansion of existing solutions.

Thematic Focus

• This third call for proposals is seeking solutions targeting any one of the below SDGs. No preference will be given to solutions that target multiple SDGs.
  • SDG 3 (Good Health & Well Being): Ensure healthy lives and promote well-being for all at all ages
    • Solutions can target any areas aligned with SDG 3, including but not limited to:
      • Maternal and Child Health Support;
      • Accessible healthcare services including medicines, vaccines and health coverage;
      • Mental health and well-being;
      • Improvement in Health infrastructure.
  • SDG 13 (Climate Action): Take urgent action to combat climate change and its impacts
    • Solutions can target any areas aligned with SDG 13, including but not limited to:
      • Strengthen climate resilience and adaptive capacity to climate-related hazards and natural disasters;
      • Supporting climate change mitigation, adaptation and impact reduction with a focus on marginalized groups;
      • Fostering inclusive climate action.
  • SDG 16 (Peace, Justice and Strong Institutions): Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
    • Solutions can target any areas aligned with SDG 16, including but not limited to:
      • Fostering global peace by prioritizing efforts to reduce violence and protect vulnerable populations;
      • Advance justice and the rule of law;
      • Enhance global governance by strengthening relevant national and international institutions.

Types of Grants

• Pre-launch
  • Feasibility study
    • Grants up to USD 200,000.
    • Early stakeholder engagement and an initial design of the capital structure should have already been completed before applying.
  • Proof of concept
    • Grants and conditionally repayable grants up to USD 500,000.
    • If feasibility stage (or equivalent) has been achieved, funding to complete all design and structuring activities required to launch the solution.
• Post-launch (operational)
  • Expansion
    • Grants and conditionally repayable grants up to USD 300,000.
    • If a solution has already launched but requires operational funding support to scale and reach a financially viable size.

Geographical Focus

• Solutions can target any developing country or countries eligible to receive official development assistance (ODA) according to the OECD-DAC List of ODA Recipients. They highly encourage solutions that target low-income and least-developed countries.

Eligibility Criteria

• Developing countries
  • Solutions must target activities that benefit ODA-eligible countries as defined by the OECD Development Assistance Committee.
  • Solutions must target activities that benefit ODA-eligible countries as defined by the OECD Development Assistance Committee.
  • The Initiative will not fund solutions targeting any countries subject to financial sanctions.
• SDGs
  • Solutions must clearly and directly address SDG 3 (Good Health & Well-Being), SDG 13 (Climate Action) and SDG 16 (Peace, Justice and Strong Institutions)
  • No preference will be given to solutions that target multiple SDGs.
• Impact Finance solution
  • Feasibility Study and Proof of Concept applications must focus on the design and structuring of new impact finance solutions that have not yet launched.
  • Expansion applications must focus on the scaling of existing impact finance solutions that have already launched.
  • Examples: bonds, facilities, funds, capital markets instruments, private companies, project finance structures, results-based financing instruments etc.
• Minimum Progress
  • Proof of early stakeholder engagement (Example: draft or signed MoU, partnership agreement, EOI etc.) and an initial design of the capital structure should have been completed for all application types.
• End beneficiaries in developing countries
  • Impact finance solutions must clearly and directly benefit end beneficiaries in targeted developing countries.
• Private Capital mobilization
  • Solutions must show strong potential for private capital mobilization on a direct and/or indirect level. Direct private capital mobilization is preferred.
• Type of applicants
  • Applications will only be accepted by organizations or consortia of organizations. Organizations must have proof of incorporation and audited financial statements from the most recent fiscal year.
  • Ineligible applicants
    • Individuals
    • The Initiative will not fund solutions targeting any countries subject to financial sanctions.
  • Applicants can be based anywhere in the world. They highly encourage locally-based institutions in developing countries to apply.
• Target size
  • Solutions must demonstrate a credible plan to scale to a size of at least USD 25 million over the medium to long term.
• International ESG practices
  • All applications should adhere to international practices regarding environmental, social and governance (ESG) standards.

For more information, visit Convergence.