BlueOrchard, part of the Schroders Group, has announced a US$250m first close for its Climate Action Mobilisation Fund (BOCAMF), backed by Aviva Investors and Daido Life Insurance Company, as well as commitments from Schroders, British International Investment (BII) and FinDev Canada.
Senior financing came in the form of investment grade notes and the Fund will provide senior loans to financial institutions that channel climate finance to SMEs, while also lending directly to companies.
The strategy aims to combine attractive risk-adjusted returns with measurable climate impact. A key objective in designing the senior notes was to meet the regulatory requirements of life insurers, including those of UK insurers seeking matching adjustment eligible assets under Solvency UK. By embedding these requirements directly into the Fund’s design, the structure creates a route for institutional investors to deploy capital within their existing regulatory frameworks.
Michael Wehrle, CEO of BlueOrchard, said: “The successful first close of BOCAMF demonstrates what can be achieved when institutional investors, development finance institutions and investment managers work together to design solutions around investors' needs. By combining BlueOrchard's 25-year track record in emerging markets private credit with an innovative blended finance structure, including direct corporate lending, we have delivered an investment solution that broadens institutional access to climate finance while meeting the investment and regulatory requirements of insurers and other long-term investors.”
Masaki Sano, general manager of the credit investment department at Daido Life, added: "We are pleased to participate in BOCAMF, an innovative investment solution that supports climate action across emerging and frontier markets. We believe this initiative represents an attractive investment opportunity that seeks to deliver both financial returns and measurable climate impact. Together with BlueOrchard and fellow investors, we look forward to supporting efforts that address the global challenge of climate change and contribute to sustainable economic development."
