The CFF is a green financing vehicle specifically created to mobilize capital from both domestic and external sources targeting both private and public entities. The resources mobilized will be directed towards low carbon and climate resilient investments through blended instruments such as debt, equity, trade and asset finance, guarantees and grants.

Through the facility, the Bank will take lead, arrange and structure deal transactions that can shape development of green innovations, technologies and markets. The idea is to build a strong pipeline of deals syndications, attract co-investments and demonstrate climate finance engineering solutions in the local context.

The facility will offer concessional loans with a fairly low interest rate. There will be efforts to source for and attract non-repayable grants for blend financing. Grants will be blended with debt to reduce the risks associated with high start-up capital, high transaction costs and long maturity periods of green investments. The Bank has committed UGX 50 billion towards capitalization of the facility for investment in green projects.