Blended mechanisms

Blended Mechanisms

The mechanism must be structured as a financial instrument and may offer solutions such as credit or guarantees, with the requirement that its investments include a concessional component relative to standard market conditions, whether in terms of access, risk, interest rates, or tenor. Additionally, the provision of incentives for long-term operations and the inclusion of a technical assistance (TA) component for beneficiary projects are considered favorable features.

Structuring

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STRUCTURING SUPPORT

Value proposition		On-demand structuring support, mobilizing networks and expertise to refine the mechanism

Operating model		Engagement in mechanism’s refinement meetings Connection with projects on BIP pipeline or other related networks within BIP to validate the mechanisms’ model

Mechanisms fundraising

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BIP STAMP

Value Proposition		BIP Stamp can strengthen credibility in fundraising negotiations, as recognition of alignment with the national climate transition agenda

Operating model		As part of the platform, the mechanism can use BIP’s logo in its institutional materials and website to support its fundraising efforts

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FUNDRAISING

Value Proposition		Support actions and connections led by BIP with selected investors (sovereign organizations, foundations, climate funds, family offices, MDBs, companies, etc.)

Operating model		Inclusion of the mechanism on the website/materials of the BIP Support in preparing presentation materials for the mechanism Ad hoc meetings with investors to present selected mechanisms Direct connection of interested investors with mechanisms

Access to Projects

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ACCESS TO BIP PIPELINE

Value proposition		Access to a pre-selected projects pipeline aligned with the government's climate transition agenda

Operating model		Direct connection to projects of interest

Visibility for benefited projects

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INCLUSION OF PROJECTS IN BIP

Value proposition		Potential for inclusion of projects supported by the mechanisms in BIP's projects pipeline

Operating model		Project presentations to FIs organized by BIP Direct connection with interested FIs

How can fund managers submit blended mechanisms to BIP?

As is the case with the project and fund selection process managers or proponents interested in integrating concessional mechanisms into the BIP must complete an Application Form and submit it along with the Regulations of the mechanism in question to the BIP secretariat. If the instrument only has internal regulations, these should be shared for proper evaluation by the platform.

Only mechanisms that meet the minimum parameters and robustness criteria of the Platform will proceed to the analysis phase, which is conducted by the BIP Secretariat. Therefore, it is essential that the proponent verifies beforehand the adequacy of the mechanism to the established requirements including its financial nature, target committed assets, and alignment with the priority sectors of the ecological transition.

Related Documents:

List of required information for submitting mechanisms	ㅤ	ㅤㅤ
Presentation of the criteria for mechanisms	ㅤ	ㅤㅤ