SDG Loan Fund mobilizes USD 1.1 billion of investor capital

The SDG Loan Fund [1] has successfully mobilized USD 1.1 billion of investor capital to advance the United Nations Sustainable Development Goals (SDGs) in emerging and frontier markets, using an innovative “blended finance” model.
Investors in the fund, including Allianz, FMO and Skandia, are providing capital for high-impact, SDG-aligned loans to local companies and projects across Latin America, Asia, Africa and Eastern Europe.
Allianz Global Investors is managing the SDG Loan Fund and FMO Investment Management is originating and managing the loan portfolio. The John D. and Catherine T. MacArthur Foundation (MacArthur), has committed a USD 25 million guarantee for credit enhancement.
The SDG Loan Fund’s large-scale and multi-sector reach are enabled by a first loss investment from FMO, coupled with MacArthur’s guarantee. Together, these catalytic investments are unlocking USD 1 billion in private capital for affordable energy, financial inclusion and sustainable agriculture in emerging and frontier markets.

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