The Green Guarantee Company, is the world’s first ever climate-focused guarantee company, set to unlock USD 1 billion in climate finance for developing countries.
It will provide guarantees to institutional investors through buying listed green bonds and availing green loans in the private credit market.
Speaking about this brand- new initiative, the Green Fund said on its online platforms, that it will address the problem of inadequate climate financing from developed countries by de-risking international private sector investments in mitigation and adaptation projects.
“It will be a powerful ally for developing countries by giving them access to international capital markets through its business model.”
GCF will serve as the founding equity shareholder in this first-of-its-kind institution by providing early stage and patient capital to incentivise participation from more private and institutional commercial investors.
GCF is set to invest USD 40.5 million as the first amount, then followed by subsequent
investments of about USD 82.5 million
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