“Today, we are marking the start of further close collaboration between our nations in sustainable and impact finance to achieve the SDGs,” said Frieden on 16 January, during the announcement of a strategic multi-partner collaboration at Davos. Archive photo: Romain Gamba / Maison Moderne

“Today, we are marking the start of further close collaboration between our nations in sustainable and impact finance to achieve the SDGs,” said Frieden on 16 January, during the announcement of a strategic multi-partner collaboration at Davos. Archive photo: Romain Gamba / Maison Moderne

Luc Frieden has announced a partnership between Luxembourg, Switzerland and the UBS Optimus Foundation to enhance blended finance, targeting over CHF 1bn for impact investing.

In a significant development for global impact investing, the Luxembourg government has collaborated with Switzerland and the UBS Optimus Foundation to enhance blended finance efforts aimed at achieving the United Nations sustainable development goals, especially in developing economies. This partnership-- by Luxembourg prime minister (CSV) and various Swiss and UBS Optimus Foundation representatives at a World Economic Forum event in Davos on 16 January 2024--marks a strategic effort to mobilise private capital on a large scale.

The SDG Impact Finance Initiative (Sifi), a public-private partnership between the Swiss government and UBS Optimus Foundation, aims to generate over CHF 1bn (€1.07bn) for low- and middle-income countries by raising more than CHF 100m in catalytic funding. Luxembourg’s ministry of finance’s involvement in this initiative is expected to bolster Sifi’s capacity to design and mitigate risks in innovative impact finance solutions, fostering positive social and environmental change in line with the SDGs.

Frieden highlighted the commitment of Luxembourg and Switzerland to impact finance and their longstanding financial services relationship. Finance minister  (CSV) echoed these sentiments, emphasising the grand duchy’s reputation as a green financial centre and pioneer in sustainable finance. Luxembourg’s partnership with Sifi, said Roth, underscores its expertise in blended and impact finance and reinforces its status as a leading international investment fund centre.

Guillaume Bonnel, CEO of Sifi, welcomed Luxembourg’s ministry of finance to the partnership, citing its extensive experience in sustainable finance and impact investing.

The initiative, launched in December 2021, is dedicated to unlocking up to CHF 1bn in private capital for the SDGs by 2030. It achieves this through grants supporting innovative financial solutions, first-loss investment to scale impact investment solutions and efforts to strengthen the impact investing ecosystem. The initiative has already awarded CHF 3.32m in grants targeting various SDGs and is poised to make its first investments in January, including up to CHF 5m of first-loss equity in blended finance vehicles focusing on climate action.

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