Our guarantee process
Guarantee criteria
The Green Guarantee Company’s guarantee criteria is aligned with the Climate Bond Initiative’s “Climate Bonds Standard and Certification Scheme”, a labelling scheme for bonds, loans and other debt instruments.
The Green Guarantee Company can guarantee the following list of Eligible Debt Instruments which can be certified under the Climate Bonds Standard.
Eligible Debt Instruments
- Use of Proceeds Bond
- Revenue Bond
- Project Bond
- Securitisation (ABS) Bond
- Covered Bond
- Sukuk
- Syndicated /Club Loan
- Private Placement
Eligible climate projects
The Green Guarantee Company can provide guarantees to cover the following list of Eligible Climate projects.
Energy
Solar, wind, geothermal, bioenergy, transmission and distribution and storage
Transport
Private and public passenger transport, road freight, cross-cutting, shipping and miscellaneous vehicles
Water
Water monitoring, storage, treatment and distribution, flood defenses and nature-based solutions
Buildings
Commercial and residential buildings, and industrial buildings (manufacturing facilities, energy efficiency and low-carbon buildings)
Waste & pollution control
Waste storage, biological treatment facilities and waste-to-energy
The Green Guarantee Company can provide a guarantee to support an Eligible Climate Project in any developing country that is listed on the Development Assistance Committee (“DAC”) List of Official Development Assistance (“ODA”) Recipients published by the Organisation for Economic Co-operation and Development (“OECD”).
Our transaction selection process
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1.
Transaction Origination
Transactions will be originated by the Green Guarantee Company’s Origination Partners based on the parameters set out in Green Guarantee Company Guarantee Policy.
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2.
Initial Due Diligence Screening
The transaction will undergo an initial due diligence screening to determine potential investments that fit the Green Guarantee Company’s investment objectives and criteria.
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3.
Review and Challenge
Following a professional review of the available information and documentation, the screening note will be completed by the Green Guarantee Company’s investment team and then presented for review to the Green Guarantee Company’s Impact and Investment Committees.
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4.
Due Diligence
The outcome of the due diligence will be a Transaction Scorecard and a detailed transaction due diligence report from the investment team with support from independent in-country climate consultants.
Where gaps and/or deviations exist in the due diligence report, the The Green Guarantee Company’s investment team, under the guidance of The Green Guarantee Company’s internal specialists, will work to assist the borrower to develop a remediation strategy to address the gaps/deviations.
The M&E Strategy is developed by the Green Guarantee Company’s investment team in collaboration with the Green Guarantee Company’s in-country specialist consultants and the borrower.
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5.
Approval
Approvals are to be obtained from the Green Guarantee Company’s Impact Committee and its Investment Committee, following the review of the updated Transaction Scorecard, detailed transaction due diligence report, remediation strategy and M&E Strategy provided by the Green Guarantee Company’s investment team.
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6.
Guarantee Issuance
The Green Guarantee Company’s Investment Committee will issue a formal approval to provide a guarantee on behalf of the borrower. Once this approval is issued, the Green Guarantee Company commences the guarantee issuance process which will include the drafting of the guarantee documentation.
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