Green Guarantee Company aims to mobilise $1 billion in climate financing to tackle global climate crisis

Leading global law firm Dentons is advising the United Kingdom’s Foreign Commonwealth & Development Office (FCDO) on its anchor investment in The Green Guarantee Company (GGC), the world’s first climate-focused guarantee company. GCC is set to unlock billions in climate finance for developing countries by providing guarantees for institutional investors buying green bonds issued and listed on the London Stock Exchange (LSE) and green loans issued in the private credit market.

The FCDO is investing in GGC through its flagship MOBILIST programme, which supports investment solutions that help deliver the global goals for sustainable development and the climate transition. MOBILIST competitively sources and selects dedicated emerging and frontier market investment products.

GGC is also receiving capital from the Green Climate Fund, the Nigeria Sovereign Investment Authority, the United States Agency for International Development with Prosper Africa, and Norfund, and will leverage an initial $100 million from investors to provide up to $1 billion of guarantees. The company will prioritise green infrastructure, renewable resources, alternative energy, and clean transportation.

Owen McLennan, Dentons partner in the firm’s Asset Management and Investment Funds  team, based in Edinburgh, who led the team advising the FCDO said, ” We are honoured to have been trusted by longstanding client FCDO as their legal advisors on this anchor investment in GGC, which will help the MOBILIST programme to continue its aim of boosting growth in developing countries, while helping to tackle the global climate crisis.”

Owen was assisted in advising the FCDO by Paul Flynn, a counsel in the Corporate practice in Edinburgh. Sam Smart, an associate specialising in Investment Funds and Asset Management, and associate Viktoria Tsvetanova from the firm’s Competition team, were also a key part of the Dentons’ team.