Glossary

Blended finance

Use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development issues.

Capital concession:

It refers to a type of financing that is characterized by having a rate or yield below the market.

Capital of first loss:

It is defined as the capital that absorbs losses before all other sources of capital. It is often used to catalyze the participation of other investors who would not otherwise have entered into the transaction, thus mobilizing a larger volume of capital that would not otherwise have been obtained.

Catalytic Capital:

Catalytic capital accepts concessional returns and/or disproportionate risk to generate positive impact and enable third-party investments that would not have been possible before.

Impact Linked Financing:

It refers to the practice of linking the granting of financial rewards to organizations that obtain positive social and/or environmental results.

Social Purpose Organization:

Established organizations with a social mission. They include social enterprises and non-profit organizations.

Subordinate capital:

A type of capital that is subordinated to other forms of capital in the distribution of payments in the event of a bankruptcy or dissolution of the company.