ADB and BlueOrchard Sign $50M Risk-Sharing Agreement to Expand Microfinance
The Asian Development Bank (ADB) and leading impact investment management firm BlueOrchard Finance Ltd have signed a $50 million risk-sharing agreement to expand microfinance coverage in ADB's developing member countries (DMCs).
BlueOrchard is the first impact investing asset manager to partner with ADB's Microfinance Program. Under the program, the company's flagship fund, the BlueOrchard Microfinance Fund, will invest in selected microfinance institutions (MFIs) and banks. ADB will share the default risk of these investee entities to help expand the fund's risk appetite and deployed capital into DMCs and encourage a greater flow of private sector funds to deepen financial inclusion.