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.
National water financing facilitiesEstablish sustainable domestic non-bank organisations to finance water and sanitation utility infrastructure investments.
Water financingMobilise local currency capital from the domestic institutional investors by issuing bonds through pooling of investments and arranging guarantee structures, if needed.
Water utility and project developmentSupport water infrastructure project development and governance for water utilities to create bankable investments for investors.
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
How it works
An interactive animation to show the distribution and repayment of funds.
Water & Sanitation
KENYA – The first National Water Finance Facility (NWFF), Kenya Pooled Water Fund (KPWF), has been initiated in Kenya with support of the Netherland Embassy in Nairobi, the Kenyan National Treasury, the Ministry of Water and Irrigation, the Water Sector Trust Fund, USAID, SIDA and SNV. The Kenyan NWFF has been incorporated with a Kenyan Board and senior staff members and expects the first issuance of pooled bond to be issued in 2019. This long term local currency financing will enable water and/or sanitation access to approx. 400,000 people of which 25% are living in designated Low Income Areas. We expect the Kenya NWFF to be able to plan similar bond issuances each year going forward.
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 KenyaWFF and WaterWorX signed the Memorandum of Understanding for the cooperation in Kenya read more...
May 2017 / GWI
Global pooled finance initiative for water gets EUR 10.0M Dutch government backingA new water financing facility aims to leverage €1 billion of debt finance from local institutional investors. read more...
Joost Zuidberg, CEO Cardano Development
May 2016 / GWI
POOLING RESOURCES TO BRIDGE KENYA’S FUNDING GAPThe $400 million funding deficit in Kenya’s National Water Master Plan will need to be met from so read more...
Roy Torkelson, financial consultant
WFF goal of worldwide sustainable water, is supported in publications such as the
The World Health Organization Glaas Report
And the World Bank’s Water Global practices
Read full reports here.
"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." +
"A much needed focused approach to help credit worthy water utilities access long term capital to meet their SDG 6 goals." +
"A proven way to provide domestic pension funds access to creditworthy domestic water investments" +
“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” +
“Local pension funds finance investments by well performing water utilities to help them achieve safe water and sanitation for all” +
"Excellent and scalable example of bridging the gap between the water and finance sector." +
"WFF is consistent with World Bank policy, easing the transition to pooled bond financing for sustainable water and sanitation service delivery" +
"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" +
"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." +