INSUBCONTINENT EXCLUSIVE:
KATHMANDU, MAY 11Achieving the United Nations SDGs
will require massive investment in developing countries
Blended finance, which combines concessional public funds with commercial funds, can be a powerful means to direct more commercial finance
toward impactful investments that are unable to proceed on strictly commercial terms.
NRB study suggests Nepal needs only
'Both Canada and Nepal can benefit from trade,
investment cooperation'
Blended finance has grown
In 2021 it represented an aggregated financing of over USD160 billion, with annual capital flows averaging approximately USD9 billion since
2015.
One of the most compelling aspects of blended finance is that it uses relatively small amounts of donor funding to
rebalance a project's risk profile.With this small infusion of concessional funding, pioneering investments become attractive to private
In emerging markets, the flow of private capital is constrained by investors' perceptions of high risks and low returns.When investors
perceive a high risk, either because of pioneer nature of a project or a challenging environment, they tend to expect commensurately high
returns.A version of this article appears in the print on May 12, 2022, of The Himalayan Times.
This article first appeared/also appeared in https://thehimalayantimes.com