Finance
2024 predictions: Blended finance to grow bigger in Asia | ESG | AsianInvestor
This is a four-part series of thematic predictions for 2024. This is the fourth story.
Blended finance is poised to gain a lot more traction in Asia as a means of driving private investment toward sustainable development goals, if key challenges around awareness, policy incentives, and aggregating deals to mobilise capital at scale can be addressed.
Anthony Gao,
Pictect Wealth Management
In Asia, where blended finance is still a relatively new approach for philanthropic capital, Pictet Wealth Management’s Asia head of philanthropy services, Anthony Gao, expects to see more adoption in proof-of-concept pilots and in the project-preparation stage.
“Public sector funding will continue to play a significant role in shaping and driving the adoption,” Gao told AsianInvestor.
Over the past few years, Asia has seen some adoption by philanthropic capital not only in the climate space, but also on social topics like education and health, especially in South Asia and Southeast Asia, said Gao.
There has also been a large uptick in the number of development finance institutions convening to focus on the topic, and strong interest among key stakeholders such as philanthropists, family offices, and commercial financial institutions.
“Asia has the highest concentrations of middle-income countries, where significant social and environment impact can be achieved with a manageable level of risk, and we should be able to see much more upside in the region with the right support and incentives,” said Gao.
With the ability to channel and coordinate efforts to address key challenges, blended finance has the potential to grow exponentially in Asia to meet the region’s substantial sustainable development funding needs, he said.
AWARENESS AND INCENTIVES
Unlocking blended finance’s potential at scale requires new levels of collaboration between public, private and philanthropic partners.
With rapid growth in the number of impact-focused investors, Gao sees education and policy barriers as key obstacles to tapping the massive potential of blended finance. The role of governments in key economies will also be critical to the model’s success.
“We need to raise awareness, through more education and sharing of best practices,” said Gao. “Governments must also introduce targeted incentives enabling blended finance and remove obstacles in order to allow participants to make return-generating financial investments.”
Also read: CDPQ Asia head: Blended finance’s big potential for EMs
Fragmented deals and instruments remain a barrier to large-scale institutional investment.
“Development finance institutions and the commercial ones should do more aggregating of blended finance projects, to address the challenges of attracting investment capital due to the size,” said Gao.
NO STANDARD SOLUTIONS
Blended finance solutions must correspond to local investor types, policy environments, time horizons and asset classes, according to Ou Yong Xuan Sheng, an ESG and green bond analyst at BNP Paribas Asset Management, who believes one-size-fits-all approaches are unlikely to succeed.
In Asia, the main challenge addressed by blended finance is the high cost of capital for projects in the emerging and frontier markets, he said.
Ou Yong Xuan Sheng,
BNPPAM
“We can think about Vietnam, Laos, Cambodia as examples of markets where cost of capital is prohibitive for projects. These markets are also in great need for sustainable infrastructure as these markets grow and develop to avoid locking in polluting infrastructure,” Ou Yong told AsianInvestor.
Blended finance could also help finance the early decommissioning of coal related assets, where capital is required to fund both the opportunity cost of early retirement and the operation of the assets until they are offline.
“Opportunity costs are usually a thought exercise but in early retirement, it becomes actual costs to existing investors of the assets who now have to cut short the investment payback timeline,” said Ou Yong.
“We don’t think there is any standard framework for risk-sharing instruments because it will have to be crafted and designed for individual situations—types of existing investors, types of public capital available, timeframes, type of assets, etc. In other words, it can be difficult to scale blended finance as a standard product or vehicle.”
MEASURING SUCCESS
Gao asserted that the true measure of blended finance’s efficacy hinges on leverage, additionality, and sustainability.
“Leverage refers to the ability to catalyse a multiplier effect by drawing in commercial investment,” he explained. “Additionality is about remedying market shortcomings or introducing financial instruments that have been scarce. Sustainability entails producing significant risk-adjusted returns in order to maintain the flow of investment capital.”
While Gao acknowledged the common metrics for assessing impact, such as the reduction of greenhouse gas emissions and job creation, he advocated for a more region-specific approach.
“It will be helpful for Asian stakeholders to refine and adopt clearer taxonomy and standards based on Asian context,” he said.
¬ Haymarket Media Limited. All rights reserved.
The US-based institute’s “2026 Graduate Outlook Survey”, released on Wednesday, found that 71 per cent of Hong Kong graduates rated their career prospects between eight and 10 out of 10. The global average for that level of optimism was 59 per cent.
The graduates’ view of careers in finance reflected “both the sector’s resilience and Hong Kong’s continued strength as an international financial centre, which ranks third worldwide and first in Asia-Pacific”, the institute said in a statement.
That confidence was “deeply grounded”, it said, with nearly 90 per cent believing they had the skills to succeed and clearly understood what employers were looking for, notwithstanding the wider adoption of artificial intelligence in the city.
“Rather than viewing AI as a threat, 38 per cent of Hong Kong graduates believe it has no negative impact on their job hunting, and 37 per cent believe it makes securing a job easier,” the institute said. “Three quarters are already actively using AI tools in their job applications, demonstrating a proactive, tool-first mindset.”
Most people will make thousands of money decisions over a lifetime — about budgeting,
borrowing, saving and investing — yet few ever take a class on how to make them well.
This fall, Seton Hall University is changing that with a new undergraduate course
built to give students the knowledge and confidence to navigate their financial futures.
Beginning this fall, Financial Literacy (BFIN 2000, CRN 34991) will offer practical
financial skills grounded in the principles of behavioral finance. The three-credit
course meets in person on Mondays and Wednesdays from 11 a.m. to 12:15 p.m. and is
open to all undergraduates, no matter their area of interest or program.
“Financial decisions affect nearly every aspect of our lives, yet many students receive
little formal education on topics such as budgeting, saving, investing or managing
debt,” said Jennifer Itzkowitz, Ph.D., professor of finance in the Stillman School of Business. “The goal is to give students the tools they need to make informed decisions and
build healthy financial habits that will serve them throughout their lives.”
What sets the course apart is its grounding in behavioral finance — the field that
examines how psychology shapes the choices people make with money. Students will explore
why sound financial decisions can be so hard to make and learn strategies to overcome
the common mental traps that get in the way.
Over the semester, students will work through budgeting, saving, credit management,
debt reduction, investing, retirement planning and tax strategies, using real-world
applications and interactive exercises that connect each concept to their own lives.
By the end, they will have built a personalized financial plan and set achievable
financial goals.
“Whether students pursue careers in business, healthcare, education, the arts or public
service, they will face important financial decisions,” Itzkowitz said. “Understanding
how to manage money effectively can have a real impact on long-term well-being and
quality of life.”
The new course reflects the Stillman School of Business’s mission to turn theory into
practice and Seton Hall’s broader commitment to preparing students for success in
every part of their lives.
Students interested in enrolling can register through PirateNet or contact their academic
advisor. For more information about the course, contact Jennifer Itzkowitz at [email protected].
Categories:
Business, Education
Key Equipment Finance, a division of KeyBank, appointed Meghan Foley senior equipment finance officer on its bank channel team in Chicago.
In this role, Foley will support growth initiatives, strengthen client relationships and expand the delivery of equipment finance solutions across Chicago and the surrounding markets.
Foley brings more than 25 years of experience in equipment finance and commercial banking. She has a proven track record of originating, structuring and closing complex transactions across industries such as manufacturing, healthcare, food processing, distribution and business services.
Most recently, Foley served as director of equipment finance at BMO Commercial Bank, where she partnered with commercial banking teams and financial sponsors to deliver customized financing solutions. She previously spent nearly a decade with Key Equipment Finance, where she earned recognition as a top performer, including Pinnacle Club and Golden Key awards.
“Meghan brings a unique combination of deep industry expertise, long-standing client relationships, and a strong understanding of our platform,” Kathy Havlik, senior vice president, regional sales director, Central and East at Key Equipment Finance, said. “Her return to Key strengthens our ability to deliver tailored equipment finance solutions and accelerate growth across the Chicago market.”
Foley holds a bachelor of business administration in accounting from the University of Notre Dame.
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