Green Guarantee Company (“GGC”) (GCF-FP197)

Countries
  • Brazil
  • Gabon
  • India
  • Indonesia
  • Laos
  • Philippines
  • Trinidad and Tobago
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 17, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
MUFG Bank, Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
  • Infrastructure
  • Transport
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 82.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 405.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ GCF website

Updated in EWS Oct 19, 2023

Disclosed by Bank Sep 26, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Green Guarantee Company (GGC) Program will mobilize more climate finance from the private sector to developing countries, being the first guarantee company with this specific objective. GGC's business plan envisions leveraging $405 million of capital to provide guarantees to mobilize $4 billion in green bonds and loans from global credit and capital markets for climate finance in developing countries, over a 10-year period.

GGC will provide guarantees for investments in sectors consistent with the GCF, following the following result areas: generation and access to energy (30%); low emission transport (20%); buildings, cities, industries and household appliances (30%); health, well-being, food and water security (10%); infrastructure and built environment (10%).

The business plan anticipates that GGC will be able to generate a return on equity that will be attractive to commercial investors by year 10 of operations. Consequently, GGC will seek to facilitate an exit for the founding shareholders, including the GCF.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

MUFG: https://www.bk.mufg.jp/global/

GCF Headquarters
G-Tower, Songdo Business District
175 Art center-daero
Yeonsu-gu, Incheon 22004
Republic of Korea
EMAIL CONTACT FORM

Independent Redress Mechanism:

https://irm.greenclimate.fund/case-register/file-complaint

How it works

How it works