COFIDES is an accredited entity for management of the EU budget for development cooperation in an indirect manner, which empowers it to head up blending or combined financing projects.

Blending combines a contribution in the form of an EU grant with reimbursable financing (via loan or equity) from accredited financial institutions, to which other contributions can be added (such as national and multilateral financial institutions, private sector or the beneficiary country itself).

Eligible projects require, among other criteria, a non-reimbursable contribution in order to be viable from a financial, economic and/or technical point of view and are located in countries belonging to the EU’s external cooperation regions and recipients of Official Development Assistance according to the OECD. The priority sectors are water and sanitation, transport, energy, agriculture, local private sector development, ICT and social.