The Green Guarantee Company receives EUR 32 million funding from Germany

At the Hamburg Sustainability Conference, the Green Guarantee Company (GGC), managed by the Development Guarantee Group (DGG), has received a EUR 25 million equity investment and a EUR 7 million Technical Assistance (TA) non-repayable grant from the International Climate Initiative (IKI) part of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. through KfW Development Bank.

The equity investment will be deployed to support climate projects across Emerging Markets and Developing Economies (EMDEs) within GGC’s mandate while the TA grant will focus on strengthening the broader ecosystem in which GGC operates and building the capacity of borrowers to develop guarantee-ready transactions that meet GGC’s standards.

KfW is the fifth GGC shareholder after the Green Climate Fund, the UK Foreign Commonwealth and Development Office (FCDO), through the MOBILIST programme, the Nigerian Sovereign Investment Authority (NSIA) and Norfund.

GGC recently closed its first two transactions that will mobilise USD 70 million for rural electrification in Africa, aligned with the Mission 300 initiative, led by the World Bank Group and the African Development Bank, aiming to connect 300 million people in Africa to energy access by 2030.

“We welcome Germany and KfW’s EUR 32 million commitment, reflecting a strong and trusted partnership. While GGC’s mandate is global, this investment recognises Africa’s particular importance and opportunity. Together, we aim to mobilise private capital into climate-positive projects at scale and strengthen the confidence of global capital markets in emerging and developing economies.”

Lasitha Perera | Chief Executive Officer of the Development Guarantee Group

"We are very pleased to have KfW as our fifth shareholder. Germany’s equity investment significantly strengthens GGC’s capital base, enabling the platform to expand guarantee issuance and approach its mobilisation targets. The technical assistance funding will help build the broader ecosystem needed for green bond markets in EMDEs, improving issuer readiness, transparency and standards.”

Christopher Marks | Chairman of the GGC Board

“GGC’s innovative business model addresses a key market failure in the climate finance space. By strengthening GGC’s equity and guarantee capacity and pairing this with targeted technical assistance, we help to provide crucial support for high impact climate mitigation and adaptation projects in developing countries and emerging markets. We look forward to working with GGC and its co-investors to ensure these resources deliver measurable emissions reductions, enhanced resilience for vulnerable communities, and lasting market effects that scale up climate finance.”

Stephanie Lindemann-Kohrs | Director | Global Head Equity and Funds of KfW Development Bank