Deutsche Bank helps finance climate in developing countries

2022-08-06 0 By

Deutsche Bank, Germany’s largest bank, has signed a memorandum of understanding (MOU) with The Development Guarantee Group, which specializes in providing Guarantee schemes for developing countries, according to sources on Monday.Under the agreement, Deutsche Bank will act as a loan sponsor partner for the Green Guarantee Company, part of the Development Guarantee Group, to help finance climate-related infrastructure projects in developing countries.”Increased private capital support for climate-related infrastructure projects in emerging markets and developing countries will help achieve the Paris Agreement’s goal of limiting global average temperature rise to 1.5 degrees Celsius by the end of the century.”Claire Coustar, Global managing director of ESG, fixed income and currency at Deutsche Bank, said the guarantee offered by The Green Guarantee Company would enable green and climate bonds issued by developing countries to finance green projects to become investment grade, thus gaining more global investors’ favor.Deutsche Bank is a founding member of the United Nations Net Zero Banking Alliance and a member of the Glasgow Net Zero Finance Alliance working Group on Mobilizing Private Capital for Emerging Markets and Developing Countries. “We are well aware of the financial needs of emerging markets as they transition,” she said.We look forward to working with Green Guarantee to help our customers secure long-term, cost-effective funding.”According to the report, The Development Guarantee Group is the world’s first guarantee platform focusing on development and sustainability challenges.Green Guarantee Corporation is the professional guarantee agency of the Development Guarantee Group. It is committed to providing guarantee services for climate change mitigation and adaptation projects in developing countries and helping them obtain debt capital support in the international bond market.Lasitha Perera, co-founder of Development Guarantee Group, said: “We are delighted to be working with Deutsche Bank.Deutsche Bank will benefit from its long and valuable experience in providing innovative financing solutions to clients in emerging markets and developing countries, as well as to global institutional investors.Climate-related infrastructure projects in emerging markets are important investment opportunities.However, as investors tend to overestimate the actual risks of these projects, there are plenty of opportunities to be explored.Together with Deutsche Bank, Green Guarantee hopes to address this information asymmetry by providing assurance services to global institutional investors, thereby filling the existing climate finance gap and protecting our planet.”(after)