Initiated by the private sector, the SDG Loan Fund is one of the largest blended finance funds in the market to date. It has successfully mobilized $1.1 billion of investor capital to advance the SDGs, as urgently needed in emerging and frontier markets. The catalytic model of blended finance is highly effective for advancing the SDGs, as demonstrated by the John D. and Catherine T. MacArthur Foundation. Their approach achieved a 1:44 ratio.26 This model efficiently uses limited public or philanthropic capital to attract significant private investment. Bridging major funding gaps holding back the realization of these critical goals, the fund allows institutional investors to co-invest in a portfolio of FMO-originated loan participations that support financial institutions and intermediaries serving SMEs aligned with the SDGs. These high impact companies and projects are operating in sectors such as energy, finance and agribusiness across Asia, Latin America, Africa and Eastern Europe. Overall, capital deployed by the SDG Loan Fund will focus on economic growth (SDG 8), equality (SDG 10) and climate (SDG 13). Once fully deployed across approximately 100 high-impact loan participations, the fund aims to support around 60,000 jobs and prevent the release of about 450,000 tonnes of CO2e in greenhouse gases annually. Allianz Global Investors is managing the SDG Loan Fund and FMO Investment Management (a subsidiary of FMO NV – the Dutch Entrepreneurial Development Bank) originates and manages the loan portfolio. The MacArthur Foundation provided a programme-related investment in the form of a $25 million unfunded guarantee for credit enhancement.CASE STUDY 11 SDG Loan Fund Collaboration and partnerships are essential to bridging Asia’s diverse market of investment opportunities. Different partners bring unique strengths to a project, enhancing overall impact and scalability. Investors with the resources to accept the risks associated with opportunity-rich regions, especially when collaborating with local partners who have deep knowledge of regional dynamics, can drive more effective change. The added support can generate social benefits while ensuring that positive impacts are achieved without creating dependency or other negative outcomes. We also increase efficiency because of differences. We are working on the strength of our partners. So different people bring certain value-adds to a particular project and we increase efficiency. Sector expert, July 2024 This dynamic is clearly illustrated by the Breakthrough Energy Fellows Regional Hub in South-East Asia, where partnerships between Temasek and Enterprise Singapore bring a wealth of experience, expertise and regional insights. This initiative provides catalytic funding and support to climate technology innovators, helping them develop, commercialize and scale promising climate solutions. The partnership uses Breakthrough Energy’s pioneering climate technology platform, Temasek’s thought leadership, expertise and global investor networks anchored in Asia, and Enterprise Singapore’s commitment to enterprise development and valuable regional connections.27 Accelerating Impact Investments for Climate and Nature in Asia 20

Accelerating Impact Investments for Climate and Nature in Asia 2025