Tapping local capital markets
The Water Finance Facility (WFF) mobilises large-scale private investment from domestic institutional investors, such as pension funds, insurance companies and other qualified investors, by issuing local currency bonds in the capital market in support of their own country's national priority actions on water and sanitation service delivery. The aim is to develop several country level water financing facilities, which can issue bond in their capital markets to provide long-term loans to public or private water utilities that have little or no access to commercial finance or that have access at unfavorable terms, such as short tenors. Through the pooling of projects of credit worthy water and sanitation companies, the bonds will have lower risk. This risk can be further reduced, if reserve funds, guarantees, soft loans or grants for blended finance can be incorporated into the capital market structures.
Water utility and project development
Support water infrastructure project development and governance for water utilities to create bankable investments for investors.Water financing
Mobilise local currency capital from the domestic institutional investors by issuing bonds through pooling of investments and arranging guarantee structures, if needed.National water financing facilities
Establish sustainable domestic non-bank organisations to finance water and sanitation utility infrastructure investments.Impact
WFF unlocks local capital market development by providing alternative, credit worthy long term investments opportunities for the local pension funds and other investors of the domestic capital market. WFF’s target is to provide approximately 20 million people with sustainable access to safe water and adequate sanitation and hygiene. READ MORE
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How it works
An interactive animation to show the distribution and repayment of funds.
Partners
Global Water Finance Facility
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(Touch to view)
Have 3 minutes? Watch our video on Water Finance Facility’s unique approach.
Portfolio
Latest news
Read how WFF is making a difference by using its capital to develop local water financing facilities that can bring private, large-scale and long-term capital market financing into the water sector.
April 2020 /
WFF and WaterWorX signed the Memorandum of Understanding for the cooperation in Kenya
WFF and WaterWorX signed the Memorandum of Understanding for the cooperation in Kenya read more...May 2016 / GWI
POOLING RESOURCES TO BRIDGE KENYA’S FUNDING GAP
The $400 million funding deficit in Kenya’s National Water Master Plan will need to be met from so read more...“There is a long history of these structures working, and the beauty is that they can be tailored to the legal and institutional framework of each country.”
Roy Torkelson, financial consultant
“The loans would be used for longterm investment in potable water or sanitation services, and the requirement is that they generate sufficient revenue to make debt repayment possible.”
Joost Zuidberg, CEO Cardano Development
May 2017 / GWI
Global pooled finance initiative for water gets EUR 10.0M Dutch government backing
A new water financing facility aims to leverage €1 billion of debt finance from local institutional investors. read more...Other reads
WFF goal of worldwide sustainable water, is supported in publications such as the
A-recipe-for-1-billion-in-sustainable-investment
The World Health Organization Glaas Report
And the World Bank’s Water Global practices
Read full reports here.
Our team
"A proven way to provide domestic pension funds access to creditworthy domestic water investments" +
"A much needed focused approach to help credit worthy water utilities access long term capital to meet their SDG 6 goals." +
"Mobilising capital markets financing for the water and sanitation sector has the potential to transform the water financing landscape and free up cheaper financing for more vulnerable water and sanitation projects for example in rural areas" +
“Creating an investment opportunity for domestic institutions giving a long term funding opportunity for aligned projects, resulting in an opportunity to provide access to water for many, is a true community opportunity” +
"WFF enables the water companies in developing countries to finance their long term projects in local currency to able to provide access to safe water and sanitation, which is crucial to human welfare." +
"WFF is consistent with World Bank policy, easing the transition to pooled bond financing for sustainable water and sanitation service delivery" +
"Excellent and scalable example of bridging the gap between the water and finance sector." +
“Local pension funds finance investments by well performing water utilities to help them achieve safe water and sanitation for all” +
"WFF bridges the gap between the finance world and the water & sanitation world: to give people access to safe water & sanitation as well as to bring new investment opportunities to domestic institutional investors." +
Our partners
WFF is associated with the Cardano Development, highly reputed manager of alternative and focused funds with a strong track record in developing and scaling-up innovative finance solutions in frontier markets. The Water Financing Facility received initial funding of € 10 million from the Government of the Netherlands, and is endorsed by The Global Innovation Lab for Climate Finance. We are presently looking for development partners to support our objectives by funding activities with interest in a seat in the Governing Council.
