MOBILIST INVESTEE GREEN GUARANTEE COMPANY CLOSES FIRST CLIMATE TRANSACTIONS
The Green Guarantee Company (GGC) has closed its first two transactions, using initial capital from MOBILIST and other shareholders to mobilise $US70 million for projects expected to provide access to clean energy for over 4.6 million people in sub-Saharan Africa. MOBILIST provided technical assistance funding to support the larger of these two transactions – a green bond to be listed on the London Stock Exchange (LSE).
GGC is managed by the Development Guarantee Group (DGG) and was established in 2024 as the world’s first climate-focused guarantee company, with MOBILIST providing an anchor investment of $40 million toward its initial capital needed to extend guarantees. GGC was created to offer guarantees that help borrowers in developing countries improve their credit ratings and access global capital markets, such as the LSE, to de-risk climate-focused projects for institutional investors. It celebrated its new transactions at an event at the exchange during London Climate Action Week (LCAW).
Opening capital markets through the AFC green bond
MOBILIST supported the listing of a US$ 50 million green bond issued by African Frontier Capital (AFC), guaranteed by GGC on the LSE’s International Securities Market. The bond will enable d.light, a social enterprise that offers Pay-As-You-Go financing to help people purchase solar products, to expand its existing receivables securitisation platform. As a result, the platform has reached $1 billion in cumulative purchasing capacity. This is expected to expand access to clean energy for around 4.3 million people across Sub-Saharan Africa.
By recycling DFI and MDB capital, the bond supports the establishment of a replicable private financing solution to scale energy access. The transaction marks the first time the off-grid solar sector has accessed public bond markets through a PAYGo receivables securitisation structure, opening a new channel of institutional capital.
Expanding mini-grid access in Nigeria
The other transaction saw GGC provide a US$ 20 million framework guarantee to Bank of Africa UK to support the development of mini-grids in Nigeria. This forms part of the DARES programme, a flagship initiative between the World Bank Group and the Government of Nigeria, managed by the Nigerian Rural Electrification Agency. ImpactA Global, another MOBILIST investee, is a co-lender in this transaction. The guarantee is expected to support developers in providing around 340,000 people with new or improved energy access, alongside 13 MW of renewable energy capacity equivalent to roughly 250,000 tonnes of CO2 avoided per year.
Building a market for EMDE green bonds
The global green bond market remains dominated by developed countries, and smaller issuers from emerging markets often struggle to access global capital. The UK is proud to have supported the creation of GGC and the listing of the AFC bond. As London marks Climate Action Week, the listing demonstrates the City’s potential as a climate finance hub, enabling developing economies to access global capital markets to unlock private investment for their climate transition. It delivers the impact envisioned when MOBILIST invested in GGC, by highlighting how public markets can mobilise climate finance.