Reference: 20200315
Release date: 2 June 2020

Promoter – Financial Intermediary

BLUEORCHARD ASSET MANAGEMENT (LUXEMBOURG) SA

Location

Description

The project willl finance a debt investment of up to USD 10m in the Senior Notes of the InsuResilience Investment Fund, which is a Debt Sub-Fund, lending to financial institutions and aggregators, mainly microfinance institutions (MFIs), in return for participation in the development and distribution of climate risk insurance.

Objectives

The fund aims to protect the most vulnerable people in agricultural regions of developing countries against the impacts of climate change. Thanks to the funding and product development support provided by the Fund, the financial institutions will be in the position to offer insurance against climate risks in developing countries, as well as to make this insurance accessible and affordable. By providing compensation for damages and helping those impacted to re-establish their livelihoods, the climate insurance linked to loans in local currency provided will protect the final beneficiaries from large losses and help them to cope with the economic effects of weather events. This will enable farmers, micro and small businesses to invest in their businesses rather than having to reduce important expenses which would negatively affect their well-being in the short- and long-term. At the same time, the financial institutions will benefit from the insurance as it could indirectly reduce their non-performing loans, i.e. the Fund will contribute to an increased resilience, at the level of its borrowers and at the level of the final beneficiaries.

Sector(s)

  • Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

USD 10 million (EUR 9 million)

Total cost (Approximate amount)

USD 150 million (EUR 132 million)

Environmental aspects

Borrowers of the Fund must comply with environmental and social requirements and the standards of responsible finance.

Procurement

N/A

Status

Approved - 14/07/2020

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

ACP States Services