The deadline has been extended to July 20, 2021.
The Indo-Pacific Design Funding Window is now open to provide grant funding for the design and launch of catalytic blended finance solutions in certain countries in the Indo-Pacific region, focused on any of the following:
1) Climate Finance – Addressing climate change mitigation, climate change adaptation or both. Blended finance solutions with co-benefits of climate action are encouraged. Must align with at least one of the following: SDG 7 (Clean Energy), SDG 11 (Sustainable Cities), SDG 12 (Responsible Consumption), SDG 13 (Climate Action), SDG 14 (Life Below Water), SDG 15 (Life on Land).
2) Gender Equality – Aim to make a significant contribution to gender equality outcomes. Must align with SDG 5 (Gender Equality).
3) Blended finance solutions that also lead to climate action co-benefits like job creation are encouraged.
Types of Applications
Practitioners can apply for feasibility study or proof of concept funding:
- Proof of concept: If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents. Convergence will award repayable grants up to $350,000 for proof of concept work. Determination of whether a grant is repayable will be made on a case-by-case basis.
- Feasibility study: Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure. Convergence will award grants up to $200,000 for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.
Eligibility Criteria
To be eligible for consideration for the Indo-Pacific Design Funding Window, proposals must meet the following criteria:
- The proposal must be for a blended finance vehicle. The vehicle must aim to use catalytic capital from public or philanthropic sources to attract private sector investment to the identified development challenge.
- The vehicle must have a primary focus on
- sustainable and resilient infrastructure; and/or
- gender equality (sector agnostic).
- The target region for the blended finance vehicle must be one or more of the following “Eligible Countries” in the Indo-Pacific region: Afghanistan, Bangladesh, Cambodia, Indonesia, Laos, Mongolia, Myanmar, Nepal, Pacific Nations (Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Nauru, Niue, Papua New Guinea, Republic of Palau, Republic of the Marshall Islands, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu and Vanuatu), Pakistan, Philippines, Timor-Leste, Vietnam and Sri Lanka. The proposal will be eligible for funding only if at least 80% of the target region consists of one or more of the Eligible Countries.
- Practitioners can only use the awarded grant funding for the design and launch of the blended finance vehicle – not for investment capital or to fund operational activities of an already established vehicle.
- The proposal must adhere to the applicable proposal template, detailing the development challenge, proposed blended finance vehicle, key risks and mitigation strategies, design activities and costs, and the applicant’s relevant experience.
- Feasibility study proposals must
- include an initial vehicle structure and investment thesis, and
- have initiated engagement with potential funders and relevant stakeholders.
- Proof of concept proposals must
- detail interest and ideally commitment to participate, from funders and relevant stakeholders, and
- include an initial financial model.
- Feasibility study proposals must
- Convergence aims to select the strongest proposals based on the eligibility and evaluation criteria. Convergence does not prioritize repayable grants and the selection of proposals will not be based on whether a grant is repayable or not. If a grant is structured as repayable, the terms of repayment will be determined on a case-by-case basis with the grantee. Repayment is often contingent upon the launch of the proposed blended finance solution.
- Proposals are only accepted from organizations or consortiums of organizations. The lead organization must be able to provide
- proof of incorporation, and
- audited financial statements for the previous fiscal year.
- Practitioners awarded funding is expected to regularly report key challenges, learning’s, and results. This will be synthesized into a case study or learning brief and published to support market-wide learning.
For more information, visit https://www.convergence.finance/design-funding/open-window/indo-pacific-open-window