The Green Guarantee Company provides a USD 60 million guarantee for a green bond issued by Valency International

The Green Guarantee Company, managed by the Development Guarantee Group, provided a USD 60 million guarantee for the issuance of a green bond by Valency International Pte Ltd, as arranged by HSBC and advised by Blend Finance, with Legal & General (L&G) being the sole investor.

The proceeds of the green bond, to be listed on the Vienna Stock Exchange, will be used to finance an integrated and circular Cashew Waste Value Park in Côte d’Ivoire, generating value from cashew nut shells and by-products to produce industrial bio-oils and green energy, as well as a green warehousing facility for storage.

The transaction demonstrates how institutional capital can be mobilised towards climate-focused infrastructure and industrial development projects in emerging markets through innovative guarantee structures.

The green bond has received the Climate Bonds Initiative Certification with a 1.5°C aligned use of proceeds classification. It is the first bond Certified under Climate Bonds' new Bioenergy Criteria.

The USD 60 million is part of Valency’s overall USD150 million investment programme to build an integrated and circular cashew ecosystem in Côte d’Ivoire, capturing full value from cashew nut waste products.

The wider Cashew Waste Value Park programme is expected ultimately to process approximately 90,000 tonnes per year of cashew shell waste into: cashew nutshell liquid and cardanol as bio-based chemical substitutes and biofuel precursors; biofuel pellets as renewable fuel; biochar and bio-fertiliser for soil carbon storage and fertiliser substitution, and syngas used to generate 5 MW of renewable electricity.

The project supports Côte d'Ivoire's national strategy to raise domestic cashew processing to 50% by 2030* and to position the country as an international hub for value-added agro-industry, strengthening its role in the global cashew value chain and bringing high-value industrial processing to the Global South (SDG 9.2 inclusive and sustainable industrialisation). It also supports a high-employment domestic industry and significant employment opportunities for women**.

The project is expected to also deliver significant climate mitigation benefits, with an estimated 880,000 tCO2e avoided over a twenty-year period, from diverting cashew waste from open burning and unmanaged decomposition (SDG 12.5 substantially reduce waste through prevention, reduction, recycling and reuse) and renewable electricity generation displacing fossil-based grid power (SDG 7.2 increase the share of renewable energy).

“We are proud to have closed our third transaction and second green bond for the Green Guarantee Company. GGC's USD 60 million guarantee for the issuance of a green bond by Valency International catalyses climate capital by enabling the borrower to access long dated financing from a major UK institutional investor for an innovative project that improves the value add in the cashew supply chain within Côte d’Ivoire while generating jobs, improving the livelihoods of smallholder farmers, reducing CO₂ emissions and generating foreign exchange for the country.”

Lasitha Perera | Chief Executive Officer of the Development Guarantee Group

“This transaction represents an important milestone in Valency’s ambition to build a fully integrated and circular cashew ecosystem in Côte d’Ivoire. By converting cashew by-products into renewable energy and bio-based products, we are creating more value from the crop locally while reducing waste and emissions. The support of GGC, HSBC and L&G demonstrates how long-term institutional capital can help scale commercially viable investments with meaningful climate and development impact.”

Sumit Jain | Chief Executive Officer of Valency International

“We are pleased to have supported Valency International in completing the first corporate transaction guaranteed by the Green Guarantee Company. The transaction demonstrates how HSBC can help connect institutional investors with high-impact green projects in developing economies and support the transition to more sustainable industrial models.”

Goh Chong Han | Managing Director, Head of Debt Capital Markets, Southeast Asia, HSBC

“Investing on behalf of both internal and external clients, including pension capital from our Nature and Social Outcomes strategy, we seek opportunities that deliver attractive risk-adjusted returns alongside measurable environmental and social outcomes. Valency's investment programme combines sustainable industrialisation with circular economy innovation, expanding local processing capacity in Côte d'Ivoire and transforming agricultural waste into valuable products and renewable energy. Working with HSBC, Valency and the Green Guarantee Company, this transaction highlights how innovative financing structures can mobilise institutional and pension capital to support sustainable growth across emerging markets."

Jake Harper | Head of EM Private Debt of L&G

Sources:
* World Bank Group 2025. In a Nutshell: Agri-processing adds value in Côte d’Ivoire’s cashew industry report. Read report.
** Valency estimates that 65 to 70 percent of the employees are women.