GuarantCo Fuels India's Climate Projects with $300M

GuarantCo, a development finance institution backed by G12 governments, has announced a significant commitment of at least $300 million in guarantees for India. This initiative aims to bolster climate-related and infrastructure financing, with the expectation of unlocking up to $600 million in debt funding over the coming years. The commitment was highlighted at a recent event co-hosted with the National Stock Exchange (NSE).

This focus on India reflects a growing global interest in financing the country's climate and energy transition projects. GuarantCo's strategy involves using credit guarantees to mitigate risks for investors, thereby attracting long-term financing crucial for infrastructure assets requiring 15-20 years of stable funding. The institution has also shifted towards backing groups of projects to diversify risk and enhance financing efficiency.

Since its inception in 2005, GuarantCo has underwritten over $1.8 billion in guarantees, successfully mobilizing around $6-7 billion of private capital for infrastructure development in Africa and Asia. The firm's core mandate is to channel private investors into local capital markets within lower-income and lower-middle-income countries, including fragile regions, by making infrastructure projects safer and reducing borrowing costs.