GuarantCo, a PIDG company, announces support for climate action through their guarantee capacity

  • Date written
  • November, 2021

GuarantCo, a Private Infrastructure Development Group (PIDG) company, has announced its intention during COP 26 in Glasgow to allocate approximately USD 250 million of guarantee capacity towards accelerating climate action in India and Vietnam. This was also mentioned by the UK Prime Minister as part of the UK Clean and Green Initiative.

GuarantCo, a PIDG company, announces support for climate action through their guarantee capacity - News

GuarantCo is working on two potential transactions it hopes will be able to utilise this climate mitigation guarantee capacity and work towards clean green initiatives subject to the transaction negotiations reaching successful conclusions.

Axis Bank is the third largest private sector bank in India. GuarantCo is currently working on a potential USD 200 million guarantee framework (with total transaction size of USD 300 million) with Axis Bank in India aimed at accelerating the e-mobility eco-system in India through the capex financing for a wide range of entities engaged in manufacturing, distribution and servicing of electric vehicles, batteries and charging infrastructure.

EVNFinance (EVNF) is a non-bank financial institution in Vietnam. GuarantCo is collaborating with EVNF with the intention to support its sustainability agenda through a future focus on renewable energy. The forthcoming USD 75 million transaction with proposed guarantee of USD 50 million hopes to be the first onshore, local currency certified green bond issue in Vietnam and to be the first-ever partially guaranteed green bond issued there.

Philippe Valahu, CEO, PIDG, said:

The urgency of climate action requires innovative solutions that enable the private sector to invest, and we are delighted that PIDG Company GuarantCo is announcing these partnerships as part of PIDG package of commitments at COP26 in Glasgow.”

Emily Bushby, Interim CEO GuarantCo, said:

We are delighted to be able to mobilise guarantee capacity in a total amount of approximately USD 250 million to further climate mitigation and adaptation efforts in line with PIDG and GuarantCo’s aims and located in two of our priority markets in Asia.  We hope that all of our transactions which are able to benefit from this capacity will set a precedent for future initiatives in order for GuarantCo to make a significant impact towards positive climate action and support the Sustainable Development Goals through the long-term, local currency credit solutions that we provide.”


About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development


About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 171 infrastructure projects to financial close which provided an estimated 217 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC