Oredola Adeola
The world’s first climate-focused guarantee company, the Green Guarantee Company (GGC), has been launched by the Nigeria Sovereign Investment Authority (NSIA) alongside the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) through its MOBILIST Global programme, the Green Climate Fund, the United States Agency for International Development (USAID) with Prosper Africa, and Norfund, leveraging an initial $100 million to provide up to $1 billion of guarantees underpinned by an investment grade rating of BBB/Stable from Fitch Ratings, aiming to mobilize billions in climate finance for developing countries.
Advisor Reports obtained this in a statement released by NSIA on Tuesday.
According to the statement the Green Climate Fund, will initially focus on private credit and the LSE green bond market.
NSIA however noted that there are plans to expand the fund to other major exchanges.
It said, “It will seek to raise additional capital from the private sector as it scales its operations, targeting a guaranteed capacity of $5 billion or more by 2035.”
Advisor Report further gathered that the launch of the GGC is in alignment with the NSIA’s focus on climate and sustainability. NSIA previously launched its Renewable Investment Platform for Limitless Energy (RIPLE) – to develop renewable energy projects across Africa and Carbon Vista – a joint venture platform with Vitol, for investments in carbon removal and avoidance projects among others.
