Asia Natural Capital Design Funding Window


Relevent Country: Singapore

The Asia Natural Capital Design Funding Window is now open for application to provide grant funding for the design and launch of catalytic blended finance solutions focused on natural capital in Asia.

This Window will support blended finance solutions that find new ways to enhance and protect the world’s stock of natural assets, including water, land, soil, air, plants and animals, by attracting private investment at scale. For example, solutions could be aimed at:

  • Protecting biodiversity
  • Reducing ecosystem degradation (eg deforestation)
  • Mitigating and adapting to climate change
  • Reducing unsustainable use of land and oceans
  • Restoring and rehabilitating impaired terrestrial, coastal and aquatic ecosystems
  • While providing a fair and sustainable living to local communities.

Types of Applications

Practitioners can apply for feasibility study or proof of concept funding:

  • Feasibility study: Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure. Convergence will award grants between $50,000 and $200,000 for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.
  • Proof of concept: If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents. Convergence will award repayable grants between $200,000 and $500,000 for proof of concept work. Determination of whether a grant is repayable will be made on a case-by-case basis.

Eligibility Criteria

  • To be eligible for consideration for the Asia Natural Capital Design Funding Window, proposals must meet the following criteria:
  • The proposal must be for a blended finance vehicle. The vehicle must aim to use catalytic capital from public or philanthropic sources to attract private sector investment to the identified development challenge.
  • The vehicle must focus on the natural capital sector.
  • The target region for the blended finance vehicle must be in Asia. Preference would be given to proposals targeting Southeast Asia. Practitioners should have on the ground presence or partnerships in Asia.
  • Practitioners can only use the awarded grant funding for the design and launch of the blended finance vehicle – not for investment capital or to fund operational activities of an already established vehicle. See grant portfolio for examples of previous grants made by Convergence.
  • The proposal must adhere to the applicable proposal template, detailing the development challenge, proposed blended finance vehicle, key risks and mitigation strategies, design activities and costs, and the applicant’s relevant experience.
  • Feasibility study proposals must
  • include an initial vehicle structure and investment thesis, and
  • have initiated engagement with potential funders and relevant stakeholders.
  • Proof of concept proposals must
  • detail interest and ideally commitment to participate, from funders and relevant stakeholders, and
  • include an initial financial model.
  • Convergence aims to select the strongest proposals based on the eligibility and evaluation criteria. Convergence does not prioritize repayable grants and selection of proposals will not be based on whether a grant is repayable or not. If a grant is structured as repayable, the terms of repayment will be determined on a case-by-case basis with the grantee. Repayment is often contingent upon the launch of the proposed blended finance solution.
  • Proposals are only accepted from organizations or consortia of organizations. The lead organization must be able to provide
  • Proof of incorporation, and
  • Financial statements for the previous fiscal year.
  • Practitioners awarded funding are expected to regularly report key challenges, learnings, and results. This will be synthesized into a case study or learning brief and published to support market-wide learning.