2 February, London. The world’s first climate-focused guarantee company is set to unlock $1 billion in climate finance for developing countries by providing guarantees for institutional investors buying green bonds issued and listed on the London Stock Exchange (LSE) and green loans issued in the private credit market.
Launch of the Green Guarantee Company (GGC), the world’s first climate-focused guarantee company
The GGC aims to mobilize $1 billion in climate finance for developing countries by providing guarantees for institutional investors purchasing green bonds listed on the London Stock Exchange (LSE) and green loans in the private credit market. The company, developed by the Development Guarantee Group and Cardano Development, received capital from various entities, including the UK’s Foreign Commonwealth & Development Office, the Green Climate Fund, and others. GGC plans to leverage an initial $100 million to provide up to $1 billion in guarantees, focusing initially on private credit and the LSE green bond market but with plans to expand to other major exchanges. Guarantees will prioritize green infrastructure, renewable resources, alternative energy, and clean transportation, primarily benefiting issuers from African and Asian countries eligible for official development assistance. GGC also aims to support borrowers in delivering high-quality reporting on the climate impact of the guaranteed green bonds and loans to attract larger allocations in global climate debt portfolios.