Solutions Finance can take inspiration from a vast array of proven financial instruments. Green bonds, forest-backed bonds, vaccine bonds, community bonds, public-private partnerships, catastrophe bonds and other insurance products are just a few examples. When we design a transaction, we build on these existing models and we also innovate. To do so, we take advantage of our ability as a foundation to use both funding and investments at the same time. We can do this during the demonstration or transition phase of a project by piloting a new financial instrument or by scaling a financial model that has had success in one geographic area to have an impact further afield.
By accepting below-market rates of return, or by offering patient capital, thereby delaying the usual expected return, we can achieve long-term impact. Solutions Finance invites every sector and every stakeholder to participate—entrepreneurs, social enterprises, foundations, governments, financial institutions, small businesses and corporations.