Climate Fund Managers last year hailed two achievements in the capital markets, which will help advance the theme of blended finance for climate adaptation in emerging markets.

Its GAIA Climate Loan Fund – its first private credit facility, co-founded by MUFG, FinDev Canada and the Green Climate Fund – reached a first close of $600 million. With a target size of $1.48 billion, the fund focuses on climate adaptation and mitigation in emerging markets, including least developed countries and small island developing states.

One awards judge said: "The GAIA Climate Loan Fund bridges a critical funding gap for infrastructure assets. The blended finance approach provides long-term loans to critical assets that have often struggled to have their capital needs met."

Climate Fund Managers also closed its Climate Investor Two (CI2) fund at $1.065 billion, making it the largest climate adaptation infrastructure fund focused on emerging markets. The fund includes a Bridge to Bond (B2B) structure, which will feature a bridge loan from Sanlam Alternative Investments, backed by a guarantee from the European Fund for Sustainable Development (EFSD). This will be refinanced by a climate bond, creating a path for fixed income investors to access CI2's underlying adaptation assets on the themes of water, wastewater and oceans.

Another awards judge said Climate Fund Managers was "small but highly innovative in areas that deserve highlighting: adaptation and debt platforms/mobilisation."