Tapping local capital markets

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 facilities

Establish sustainable domestic non-bank organisations to finance water and sanitation utility infrastructure investments.

Water financing

Mobilise 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 development

Support water infrastructure project development and governance for water utilities to create bankable investments for investors.

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
countries
billion
million

How it works

An interactive animation to show the distribution and repayment of funds.

distribution and repayment of funds
Partners
Global Water Finance Facility
Management
Company
National
Water
Finance Facility
Debt Issuer
Guarantees
and
Reserve
Account
Domestic
Institutional
Investors
Loan Portfolio
Pooled
Water & Sanitation
Utilities
Equity
for
Development
First Loss
Contribution
Support
Local Currency
Bond
Bond
Repayment
Loans
Loans
Repayment
(Touch to view)
Have 3 minutes? Watch our video on Water Finance Facility’s unique approach.

Portfolio

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 2018. 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.

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.

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...
“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 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

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.


FULL REPORTS

Our team

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.

Read our privacy statement here.