Blended finance window for Antigua and Barbuda

I worked with Future Earth Ltd in a global first to design a blended finance window for the Government of Antigua and Barbuda’s SIRF Fund. The work was supported by the Commonwealth Secretariat.

As an island nation, Antigua and Barbuda is vulnerable to the impacts of climate change and, despite recent classification as a high-income country, pockets of poverty heighten climate risks for some parts of society, such as small farmers. Recognising this challenge, the Sustainable Island Resource Framework (SIRF) Fund was established in 2019 as a financial vehicle to deliver climate and environment-related projects and programmes both domestically and across the Eastern Caribbean.

Following the success of its Adaptation Programme, the SIRF Fund  wanted to expand financial support beyond concessional loans, and offer additional forms of concessional capital to small and medium-sized enterprises (SMEs) to help them decarbonise and become more resilient to climate change. 

I was part of a Future Earth Ltd technical team which designed a new blended finance window for the SIRF Fund set to become operational in 2024.

Portfolio level targets include:

• 40% of the  financial portfolio will be awarded to SMEs in which women comprise 30% or more of the owners, management or staff.

Bended finance window includes:

1. A technical assistance grant package covering pre-application advice; technical, financial and business development support; plus gender and inclusion training.
2. An in-kind micro-equity investment for the adoption and transfer of climate smart/renewable technology (of up to EC$500,000 or US$185,000). The insured technology remains the property of the SIRF Fund until the full cost of the technology is recovered, and legal ownership is then transferred to the SME according to an agreed flexible, long-term schedule of market price-linked in-kind or cash repayments via accredited channels.
3. A concessional financial loan (of up to EC$500,000 or US$185,000) at 2% interest rate is repaid according to an agreed schedule.

Read more: Future Earth Ltd