FinDev Canada invests $33 million in climate fund to boost financing

FinDev Canada, Canada's bilateral development finance institution, announced in September 2026 a commitment of US$33 million to the BlueOrchard Climate Action Mobilisation Fund (BOCAMF). The fund reached its first close with US$250 million in commitments from private institutional investors including Aviva Life, Daido Life Insurance Company, Schroders, and British International Investment (BII).

The fund is structured to provide senior loans to financial institutions that directly channel climate finance to small and medium-sized enterprises (SMEs) and corporations. Target markets include the Asia-Pacific, Africa, and Latin America regions. The strategy aims to combine attractive risk-adjusted returns with measurable climate impact.

BOCAMF is noted as the first blended finance vehicle focused on emerging and developing markets to issue publicly rated A3 notes from Moody's, a rating agency with a dedicated methodology for closed-ended funds.

With the increasing frequency of extreme climate events, the demand for climate finance is projected to exceed US$9 trillion annually. The fund intends to allocate at least 80 percent of its portfolio to climate change mitigation and adaptation activities, covering sectors such as renewable energy, sustainable agriculture, and solar energy.

FinDev Canada's CEO Lori Kerr highlighted that the fund strengthens collaboration between developing countries and the private sector. She stated the fund demonstrates what is possible when development finance, private investment, and market expertise align with a common ambition. BlueOrchard CEO Michael Wehrle added that BOCAMF offers an investment solution expanding institutional access to climate finance, leveraging BlueOrchard's 25 years of experience in emerging market private credit.