BlueOrchard has secured $250m (£185.5m) at first close for its climate-focused emerging markets private debt fund, backed by Aviva Investors and Daido Life Insurance Company.

The BlueOrchard Climate Action Mobilisation Fund (BOCAMF) received financing in the form of investment-grade notes from Aviva Investors and Daido Life Insurance Company, as well as commitments from Schroders, British International Investment and FinDev Canada.

“We are pleased to participate in BOCAMF, an innovative investment solution that supports climate action across emerging and frontier markets,” said Masaki Sano, general manager of credit investment department at Daido Life.

“Together with BlueOrchard and fellow investors, we look forward to supporting efforts that address the global challenge of climate change and contribute to sustainable economic development.”

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The fund is a blended-finance private debt vehicle with a layered capital structure, with a senior notes element designed to meet the regulatory requirements of life insurers under Solvency UK,  said BlueOrchard, which is an impact investment manager and a member of the Schroders Group.

The vehicle provides senior loans to banks, microfinance providers and other financial institutions, which in turn offers climate finance to small and medium-sized enterprises.

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“This first-of-its-kind fund demonstrates what is possible when development finance, private investment, and deep market expertise come together with a shared ambition,” said Lori Kerr, chief executive of FinDev Canada.

“By creating an investment-grade pathway into emerging market climate finance, together, we are supporting climate solutions today while demonstrating a model that can unlock larger flows of capital in the future.”

Read more: BlueOrchard launches Impact Credit Fund