Background

UN Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives; and by showing how localized investments—through fiscal decentralization, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different SDGs.

Approximately US$1.7 trillion flows from the developed world to the developing world from a diversified set of actors and with equally distinct motivations, ranging from purely philanthropic to market-rate return on investments. By being innovative in the way development assistance is deployed it can have the potential to extend the reach and effectiveness of the aid through for example the complementary deployment of private capital i.e. by blending public and private funds for enhanced development results. The development assistance then has the potential to expand the pool of foreign and domestic capital available for economic development for e.g. small and medium enterprises, agriculture, infrastructure and key public services.

UNCDF can use a combination of grant, reimbursable grant, loans, guarantees and/or technical assistance to support early stage businesses, SMEs, projects, microfinance institutions and municipal investments. Up till today UNCDFs use of loans and guarantees has been limited but there is now an ambition to make better use of these financial instruments and the last year has seen a steep increase in the issuance of loans and guarantees. One objective is now to set up a joint fund with a third-party fund manager to attract other type of capitals to UNCDF’s pipeline of projects. UNCDF may also try to offer its advisory services to other UN agencies without the mandate to do loans and guarantees.

Given its value added in advancing the Sustainable Development Goals agenda particularly in Least Developed Countries, UNCDF is on the road to expanding its capital investment mandate by optimizing its funding architecture to catalyze more funding from both official and private sources.

The LDC Investment platform team reports directly to the Executive Secretary, but supports the two operational divisions within UNCDF in their due diligence of transactions. Independently the LDC Investment platform provide a credit opinion to the Impact Investment Committee. Consequently, the team balances between being a support function to the loan officer in the field, and an independent credit risk function within the organization.

Project Description

The LDC Investment platform team is entering the ‘Expand & Innovate’ stage which is characterized by ‘Scale and growth of volume’, expansion in new products assets classes and geographies and improvement of the borrower experience. UNCDF currently operates through grants, reimbursable grants, loans, and guarantees; and is likely to also use other financial instruments (as appropriate) going forward to further its mission.

As UNCDF’s financial instruments portfolio grows and becomes more complex, there is a need for a robust back-office function to appropriately record and manage this portfolio.

UNCDF is seeking a consultant to be part of the Investment Platform Team (IP) at its Headquarters located in New York, United States. Working under the guidance and supervision of the Head of Investment Platform, and working closely with IP staff, the consultant will support the implementation of a back-office support function. This includes the design and roll out of an appropriate financial instrument management system for UNCDF’s loan and guarantee portfolio.

Duties and Responsibilities

Expected Outputs and Deliverables

  • Help the LDCIP achieve operational excellence through effective, efficient, and well controlled back office processes, including management of loan contracts, monitoring of payments.
  • Enhance LDCIP’s ability to manage issues related to compliance and financial controls
  • Support the LDCIP in creating onsite reporting templates for efficient portfolio risk monitoring
  • Support the design and implementation of the new Financial Instrument Management System
  • Support the LDC Investment platform in maintaining a repository of executed documents
  • Assist the investment specialists with research assistance for new loan and guarantee transactions

Duration of the work

  • The Consultant will be required to work at UNCDF’s headquarters at New York, USA
  • The consultant will be required to report regularly to the Head, LDCIP

Schedule of payments

  • Payment will be made on periodical basis in accordance with number of days worked and upon satisfactorily achieved deliverables All payments are subject to the clearance and approval of the Head, LDCIP

Competencies

Core Values/Guiding Principles

  • Demonstrate consistency in upholding and promoting the values of UNCDF in actions and decisions, in line with the UN Code of Conduct.
  • Demonstrate an appreciation of the multicultural nature of the organization and the diversity of its staff.
  • Demonstrate an international outlook, appreciating difference in values and learning from cultural diversity.

Technical/Functional competencies:

  • Ability to capture, develop, share and effectively use information and knowledge;
  • Relationship Management: Ability to develop, maintain, and strengthen partnerships with others inside (Programmes/projects) or outside the organization who can provide information, assistance, and support.  Sets overall direction for the formation and management of strategic relationships contributing to the overall positioning of UNDP;
  • Knowledge of financing for sustainable development and ability to apply to strategic and/or practical situations;
  • Focuses on result for the client and responds positively to feedback;
  • Ability to manage and coordinate campaigns and people with inspiration. Believe in and promote diversity in the workplace and reshaping the workforce to meet need;
  • Strong organizational skills and ability to multi-task;
  • Must be able to work in a multicultural environment and be aware of political sensitivities;
  • Computer literacy, including proficient use of research and applied software such as Excel.

Required Skills and Experience

Education:

  • Master’s Degree in Business Administration, Economics, Finance Policy, Behavioral Economics or equivalent.

Experience:

  • 10 plus years of work experience in either the financial sector or in the private sector, with at least 5 years in financial controls or back office management;
  • Prior experience from a UN agency or international organization would be regarded a merit.

Languages:

  • Fluency in English required. Fluency in French is desirable; knowledge of other UN languages will be considered a plus

Evaluation process

  • Individual consultant candidates will be evaluated based on the cumulative analysis methodology (weighted scoring method), where the award of the contract will be made to the individual consultant whose offer has been evaluated and determined as a responsive/compliant/acceptable.
  • The award of contract will be made to the individual consultant who receives the highest combined score out of the weighted technical and financial criteria as specified below.

Technical Criteria weight: 70% Financial Criteria weight: 30%

  • Criteria and scores for Technical Criteria – 70 points

Criteria 1: Extent of relevant previous experience – 30 points;

Criteria 2: Relevance of academic qualifications – 10 points.

Criteria 3: Familiarity and experience with sustainable finance and UN Agencies – 30 points;

  • Criteria and scores for Financial Criteria –30 points

p = y (µ/z), where p = financial criteria score, y = maximum number of points for the financial proposal µ=price of the lowest priced proposal z = price of the proposal being evaluated

The following documents are requested:

  1. Duly accomplished Letter of Confirmation of Interest and Availability;
  2. Personal CV indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references;
  3. Brief description of why the individual considers him/herself as the most suitable for the assignment, and a methodology, if applicable, on how they will approach and complete the assignment.
  4. Financial Proposal that indicates the all-inclusive Daily Fee price. If an Offeror is employed by an organization/company/institution, and he/she expects his/her employer to charge a management fee in the process of releasing him/her to UNCDF under Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNCDF: https://popp.undp.org/_layouts/15/WopiFrame.aspx?sourcedoc=/UNDP_POPP_DOCUMENT_LIBRARY/Public/PSU_%20Individual%20Contract_Offerors%20Letter%20to%20UNDP%20Confirming%20Interest%20and%20Availability.docx&action=default

/...