Water Finance Facility

The Water Finance Facility (WFF) is a non-bank, public benefit financial company based in the Netherlands. It works to mobilise large-scale private investment from domestic institutional investors — such as pension funds, insurance companies and other qualified investors — by issuing local currency bonds in domestic capital markets. The proceeds support national priority actions on water and sanitation service delivery, particularly in countries where public sector funding and management alone cannot meet the financing needs of Sustainable Development Goal 6 (water and sanitation for all). WFF's model centres on developing country-level water financing facilities. These facilities issue bonds in their own local capital markets and use the proceeds to provide long-term loans to public or private water utilities that have little or no access to commercial finance, or that can only access it on unfavourable terms such as short tenors. By pooling the projects of creditworthy water and sanitation companies, the resulting bonds are designed to carry lower risk. That risk can be reduced further when reserve funds, guarantees, soft loans or grants for blended finance are incorporated into the capital market structures. WFF describes three main areas of activity. First, water utility and project development: supporting water infrastructure project development and governance for water utilities so that they can create bankable investments for investors. Second, water financing: mobilising local currency capital from domestic institutional investors by issuing bonds through the pooling of investments and arranging guarantee structures where needed. Third, national water financing facilities: establishing sustainable domestic non-bank organisations to finance water and sanitation utility infrastructure investments. Beyond financing water infrastructure, WFF aims to contribute to local capital market development by providing alternative, creditworthy, long-term investment opportunities for domestic institutional investors. In this way the facility links the financing gap in the water sector with the demand from pension funds and insurers for long-dated, local currency assets. The organisation presents itself as a public benefit financial company that uses its capital to develop local water financing facilities capable of bringing private, large-scale and long-term capital market financing into the water sector. The Water Finance Facility maintains a website with sections covering its story, impact, portfolio, news, team, partners and contact information. Public information about its ownership, founding date and executive leadership is limited in the available sources, and the entity is recorded in Wikidata simply as a company from the Netherlands.

The Water Finance Facility (WFF) is a Netherlands-based non-bank, public benefit financial company. Its stated purpose is to address a financing gap in the water and sanitation sector: the availability of financing and safe management of water and sanitation for all — Sustainable Development Goal 6 — cannot be achieved by public sector funding and management alone. WFF was created to use its capital to develop local water financing facilities that can bring private, large-scale and long-term capital market financing into the water sector. The organisation's approach is built around domestic capital markets rather than international lending. WFF mobilises large-scale private investment from domestic institutional investors such as pension funds, insurance companies and other qualified investors by issuing local currency bonds. These bonds support the national priority actions on water and sanitation service delivery of the countries concerned. The aim is to develop several country-level water financing facilities, each able to issue bonds in its own capital market and provide long-term loans to public or private water utilities that have little or no access to commercial finance, or that have access only on unfavourable terms such as short tenors. A central element of the model is risk reduction through pooling. By pooling the projects of creditworthy water and sanitation companies, the bonds issued by a facility are designed to carry lower risk than standalone utility borrowing. This risk can be reduced further if reserve funds, guarantees, soft loans or grants for blended finance are incorporated into the capital market structures. WFF's activities are organised around three pillars: water utility and project development, to support water infrastructure project development and governance so that utilities create bankable investments; water financing, to mobilise local currency capital from domestic institutional investors through bond issuance, pooling and guarantee structures; and national water financing facilities, to establish sustainable domestic non-bank organisations that finance water and sanitation utility infrastructure investments. WFF also frames its work as a contribution to local capital market development. By providing alternative, creditworthy, long-term investment opportunities for domestic institutional investors, it helps deepen local capital markets while channelling savings into water infrastructure. The organisation maintains a public website with sections on its story, impact, portfolio, news, team, partners and contact details. Detailed public information on its founding date, ownership structure and executive leadership is not available in the sources consulted, and Wikidata records it simply as a company from the Netherlands.

A non-bank, public benefit financial company that taps local capital markets to finance water and sanitation infrastructure, linking domestic institutional investors with long-term water utility lending.

• Local currency water bonds

  Bonds issued in domestic capital markets to mobilise investment from domestic institutional investors for water and sanitation service delivery.

• Long-term loans to water utilities

  Long-term loans provided to public or private water utilities that have little or no access to commercial finance or access only on unfavourable terms such as short tenors.

• Blended finance and guarantee structures

  Reserve funds, guarantees, soft loans or grants incorporated into capital market structures to further reduce bond risk.

• National water financing facilities

  Sustainable domestic non-bank organisations established to finance water and sanitation utility infrastructure investments.

1. 1Water Finance Facilitywaterfinancefacility.com
2. 2About – Water Finance Facilitywaterfinancefacility.com
3. 3Water Finance Facility – Wikidatawikidata.org
4. 4Water Finance Facilitywaterfinancefacility.com
5. 5Water Finance Facilitywaterfinancefacility.com