Kuali Fund

300 million EURClimate financeBlended finance


Kuali Fund is a pioneering Spanish investment fund in climate change mitigation and adaptation, with a target size of EUR 300 million. Kuali Fund aims to help countries in Latin America, the Caribbean and India transform into low-carbon economies and increase their climate resilience by promoting good climate practices among small financial institutions, microfinance institutions, cooperatives, other non-bank financial institutions and fintech companies (collectively referred to as financial service providers, FSPs).

The fund will facilitate the transition of FSPs towards greener and more inclusive business models, so that they ultimately offer green and climate finance products to small and medium enterprises (SMEs) and smallholder farmers. The Kuali Fund will also support companies with innovative climate solutions (called innovative businesses) to increase the number of mitigation and adaptation solutions available in the market that could eventually be financed by FSPs.

The implementation of Kuali will be based on two main components: an Investment Fund (Component I) and Technical Assistance (TA) (Component II).

The Investment Fund will mobilise EUR 300 million through a SICAR together with a parallel securitisation vehicle, of which more than EUR 200 million is expected to come from private investors. Specifically, Kuali Fund will have investment commitments in first loss tranches from the Green Fund (EUR 25 million) and the European Commission (EUR 12 million), as well as a contribution from the Spanish Agency for International Development Cooperation (AECID) under FONPRODE, which has subscribed to bonds for EUR 50 million. These concessional contributions will largely allow a partial de-risking for private investors and an improvement in potential returns.

An additional feature of Kuali is the establishment of the Technical Assistance Facility (TAF), which will maximise the transformational impact of investments by reducing the main barriers that prevent SMEs and smallholders from adopting climate change mitigation and adaptation practices. The TAF is supported by grant funding from the Green Fund, the EU and AECID totalling EUR 12.25 million.  

Project nameKuali Fund
Duration5 years (investment period)
10-12 years (TAF period)
Host countryMexico, Brazil, Colombia, Peru, Panama, Ecuador, Nicaragua, Costa Rica, Bolivia, Honduras, Guatemala, El Salvador, Paraguay, Dominican Republic and India
Date of approval6th March 2024
SectorClimate finance
Amount and investment300 million EUR
Environmental categoryI-2
InstrumentEquity + Grant
Investor and co-investors if applicableGCF, EU, AECID (FONPRODE), and private investors (including GAWA and COFIDES)
Project TypeMedium