EBRD And JICA Unveil JIDAI Fund To Support Sustainable Development Through Local Currency Financing

The European Bank for Reconstruction and Development (EBRD) and the Japan International Cooperation Agency (JICA) have launched a new financing facility of up to US$1 billion aimed at expanding local currency financing across the regions where the EBRD operates. The initiative is designed to improve access to long-term funding while reducing the financial risks associated with borrowing in foreign currencies.

The partnership was formalised through the signing of a letter of intent during the EBRD’s 2026 Annual Meeting and Business Forum in Riga. The agreement establishes the Japan-EBRD Initiative for Development Acceleration and Inclusion (JIDAI) Special Fund and reflects the long-standing cooperation between the two institutions in supporting sustainable economic growth and development.

The JIDAI Special Fund will be used to support local currency lending and investment operations for both private-sector businesses and public-sector entities. By providing financing in local currencies, the facility will help borrowers reduce exposure to foreign exchange fluctuations, which can significantly impact repayment costs and financial stability.

It will also improve access to affordable, long-term capital for investment projects.Funding from the facility is expected to support a wide range of sectors that are critical to economic development and social progress. These include sustainable infrastructure, renewable energy projects, climate adaptation initiatives, water and sanitation services, healthcare systems, digital connectivity, and programmes that promote greater financial inclusion.

According to Burkhard Kübel-Sorger, EBRD Vice President and Chief Financial Officer, access to stable and affordable local currency financing plays a vital role in encouraging investment and strengthening economic resilience. He noted that the launch of the JIDAI Special Fund represents an important milestone in the partnership between the EBRD and JICA and will allow the Bank to expand its support for clients across its regions of operation.

Shohei Hara, Senior Vice President at JICA, said the new fund demonstrates JICA’s continued commitment to promoting sustainable development and economic inclusion through innovative financing partnerships. He highlighted that combining JICA’s development finance capabilities with the EBRD’s expertise in local markets would help generate long-term development benefits in regions where access to financing remains a challenge.

The EBRD is one of the world’s leading providers of local currency financing and has played a significant role in helping develop domestic financial markets in many emerging economies. The new facility is expected to strengthen the Bank’s ability to meet growing demand for local currency funding while contributing to the development of deeper, more resilient, and more sustainable local capital markets.

Through the JIDAI Special Fund, the EBRD and JICA aim to support investment, encourage economic inclusion, and strengthen financial stability across a range of emerging and developing economies, helping create the conditions for sustainable long-term growth.