Instrument Description

Instruments that offer an interest-rate discount or other financial incentive to the borrower if they are able to achieve development outcomes.

Concessionality

Results-based finance is inherently a blended finance approach, involving favorable repayment terms or bonuses for achieving policy outcomes. As seen in the instruments above, some forms of concessionality include lower interest rates, debt forgiveness, and favorable loan terms in exchange for commitment to and achievement of climate adaptation outcomes.