- Date written
- November, 2021
- Contact for guarantco
- Marjolein van Kampen
- Communications Director
- +44 (0)738 8857097
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 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.”