Deutsche Bank today announced it has signed a memorandum of understanding with the Development Guarantee Group (“DGG”). Under the agreement, Deutsche Bank will act as an Origination Partner for the Green Guarantee Company (“GGC”), which will be managed by DGG. GGC is a specialist guarantor for climate mitigation and adaptation projects in developing countries.
Claire Coustar, global head of ESG FIC, Deutsche Bank said: “As we work towards the critical goal of keeping warming to 1.5 degrees, there is a real need for greater mobilisation of private capital to emerging and developing countries. The guarantees that the GGC provides make green bonds and loans issued to finance green projects in developing countries investment grade, and therefore more compelling to a broader group of global investors.”
She continued: “As a founding signatory to the Net Zero Banking Alliance and contributor to the GFANZ taskforce ‘Mobilising Private Capital to EM&DCs’, Deutsche Bank understands the transition funding needs present in the global emerging markets. We look forward to our partnership with the Green Guarantee Company to facilitate access to long-term, cost efficient funding for our clients.”
Lasitha Perera, Co-Founder, The Development Guarantee Group said: “We are delighted to be partnering with Deutsche Bank and to benefit from its extensive experience in delivering innovative financing solutions for its clients in emerging and developing countries as well as global institutional investors. Climate-related infrastructure in global emerging markets represents a significant opportunity for global institutional investors.”
She added “However, this opportunity remains relatively unexplored due to a perception of risk that is usually higher than the actual reality on the ground. Addressing this information asymmetry by providing guarantees to global institutional investors is how the Green Guarantee Company is looking to work with Deutsche Bank to close the existing climate finance gap and contribute to protecting our planet.”
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The Development Guarantee Group
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
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About the Development Guarantee Group
The Development Guarantee Group (“DGG”) was founded by Boo Hock Khoo, Jean-Pierre Sweerts and Lasitha Perera and includes Cardano Development as an institutional shareholder, thereby uniting the collective experience of a global network of experts in setting up and running guarantee companies and programmes focused on addressing development challenges globally.
The Development Guarantee Group is the world’s first dedicated guarantee platform with the mission to design, develop and operate guarantee solutions and companies that can effectively mobilise private sector capital towards funding development and sustainability challenges.
The first company housed under the Development Guarantee Group is the Green Guarantee Company (“GGC”), which is a specialist guarantor for climate mitigation and adaptation projects in developing countries. It aims to help corporate and sub-national borrowers access long-term hard currency debt capital from the international bond markets with its guarantee.