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Palladium to design the world's first maternal and newborn health Impact Bond

Palladium has been awarded a Convergence funding award to complete the design of an Impact Bond to fund maternal and newborn health interventions in India.

The UN’s Sustainable Development Goals refocused global development priorities, but they also exposed a glaring funding gap in responding to the greatest challenges humanity faces. Blended finance is one of the solutions. This model uses traditional development and philanthropic funding sources to mobilise private sector investment. The development interventions are designed such that on successful completion investors are repaid their original capital investment, plus a premium.

Convergence is the first and only platform exclusively focused on blended finance and is using a series of design funding awards to support the next generation of blended finance models. Palladium will use the award to complete the design of a three-plus-two year Impact Bond that will fund a number of maternal and newborn health interventions in the state of Rajasthan, India; where maternal and newborn mortality is a critical challenge.

Palladium’s blended finance lead Peter Vanderwal is clear that the true power of this model lies in demonstrating that development is viable for international investors and that blended finance offers profit-driven sustainability:

“When fully implemented, the Rajasthan Maternal and Newborn Health Impact Bond is expected to be one of the largest Impact Bonds in an emerging market, and its successful rollout will play a crucial role in establishing the viability of Impact Bonds in development finance. To date, two international outcome funders and a lead investor have committed to the Impact Bond. What makes this design so different – and so important in this market – is that all actors, including the Government of Rajasthan, have agreed from the outset to move from an initial-phase three-year Impact Bond where the outcomes are paid for by international agencies, to a second-phase two-year Impact Bond for which a second tranche of funding will be raised and the government will purchase the outcomes.”

Visit the Convergence website now for more on this cutting-edge model, and stay tuned for Palladium’s upcoming series on the future of positive impact finance.


Palladium is a global leader in the development and delivery of Positive Impact – when social, environmental, and economic goals are inextricably linked. We work with governments, corporations, civil society, and non-profits to deliver solutions that transform lives and create enduring value for businesses, communities, societies, and economies.


Convergence is an independent institution that brings together public, philanthropic and private investors for blended finance investments in emerging and frontier markets. Convergence is headquartered in Toronto.