IN LONDON: The European Union (EU) and partner development finance institutions have signed the Global Green Bond Initiative (GGBI) Fund to mobilise up to €20 billion ($3.26 billion) of private capital for sustainable infrastructure projects in low- and middle-income countries.
The GGBI Fund is a new public-private investment which aims to unlock up to €3 billion in green bonds in partner countries and help finance activities that support climate change and environmental goals.
As part of the fund, bonds will be exclusively issued in primary markets, prioritising first-time issuers like governments, local authorities, and businesses. At least 20% of investments will target the world’s least-developed countries, with support for bonds in local currency and euro.
The fund is anticipated to crowd in up to €2 billion from European and international investors, leveraging €1 billion in equity from public investors.
Of this, close to €800 million will come from a consortium of European development finance institutions led by the European Investment Bank, alongside the European Bank for Reconstruction and Development, and development banks from Spain, Italy, the Netherlands, Germany, and France.
The GGBI Fund is part of the EU’s broader Global Gateway initiative, which is the EU’s strategy to boost smart, clean, and secure links in digital, energy, and transport, and to strengthen health, education, and research systems worldwide.
Write to Aaliyah Rogan at Mining.com.au
Images: European Commission
