GGC will leverage an initial USD 100 million from these investors to provide up to USD 1 billion of guarantees underpinned by an investment grade rating of BBB/Stable from Fitch Ratings.
The Green Guarantee Company (GGC) will use guarantees to help borrowers in developing countries improve their credit ratings to access global capital markets like the LSE. GGC will leverage an initial USD 100 million from its investors to provide up to USD 1 billion of guarantees underpinned by an investment grade rating of BBB/Stable from Fitch Ratings. Initially, it will focus on private credit and the LSE green bond market but plans to expand to other major exchanges. It will seek to raise additional capital from the private sector as it scales its operations, targeting a guarantee capacity of USD 5 billion or more by 2035.
GGC’s cover will prioritize green infrastructure, renewable resources, alternative energy, and clean transportation. Guarantees will be prioritized for issuers from countries eligible for official development assistance in Africa, Asia, and Latin America, including India, Indonesia, Brazil, Bangladesh, Philippines, Egypt, Vietnam, and Kenya.
Guarantees will be prioritized for issuers from countries eligible for official development assistance in Africa, Asia, and Latin America, including India, Indonesia, Brazil, Bangladesh, Philippines, Egypt, Vietnam, and Kenya.