The SDG Loan Fund has mobilized $1.1 billion to help address some of the world’s most pressing challenges by providing high-impact loans to companies and projects aligned with the United Nations Sustainable Development Goals (SDG). MacArthur’s support for the Fund, which comes in the form of a $25 million guarantee, coupled with a first loss investment by FMO, allows commercial investors to support the Fund by reducing investor risk.
The Fund’s blended finance structure, size, and focus on the SDGs in emerging and frontier markets make it a unique model for others seeking to address global challenges through impact investing. MacArthur partnered with fund manager Allianz Global Investors and portfolio manager FMO on the development of the Fund. It demonstrates the power of catalytic capital to unlock private sector investment that would not otherwise be possible but is essential to achieving progress on clean energy, global poverty, and other pressing issues.
The Fund is MacArthur’s eleventh and final Catalytic Capital Consortium (C3) investment. C3 is an investment, learning, and market development initiative that brings together leading impact investors to encourage greater use of catalytic capital.
