MUFG Bank, Ltd. (MUFG Bank) today announced that the Green Climate Fund (GCF) Board approved equity funding for the Green Guarantee Company (GGC) project. The project proposal was submitted to the GCF Board by MUFG Bank, which acts as an Accredited Entity of the GCF.
The GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change by providing financing for projects that help deliver systemic change. MUFG Bank, which acts as an Accredited Entity [1], is allowed to access GCF funds, develop funding proposals for consideration by the GCF, and oversee, supervise, manage and monitor their respective GCF-approved projects and programs.
The GGC is the first ever global guarantor dedicated to providing guarantees for climate bonds issued by private sector and sub-sovereign issuers in developing countries. The GGC aims to plug a key financing gap in developing countries by working to help climate projects gain access to affordable long-term financing from international investors through its guarantees. The bonds guaranteed by the GGC will finance climate change adaptation projects such as flood protection, and climate change mitigation projects such as electric buses or renewable energy.
MUFG Bank, as an Origination Partner for the GGC, supports issuance of climate bonds by introducing suitable guarantee opportunities and thereby access to a pipeline of eligible climate projects.
MUFG Bank will contribute to the realization of a sustainable environment and society by supporting businesses through the GCF.
[1] Accredited entities are allowed to access GCF funds, develop funding proposals for consideration by the GCF, and oversee, supervise, manage and monitor their respective GCF-approved projects and programs. To become an accredited entity, certain GCF standards must be met, including in information disclosure, environmental safeguards, and gender.
About MUFG Bank
MUFG Bank, Ltd. is Japan's premier bank, with a global network spanning around 50 countries. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG Bank's parent, Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,400 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit www.mufg.jp/english.
About the Green Climate Fund
The Green Climate Fund (GCF) is the world's largest dedicated climate fund. GCF's mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. GCF has a portfolio of USD 11.3 billion (USD 42.4 billion including co-financing) delivering transformative climate action in more than 120 countries. It also has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.
GCF-accredited entities in Japan include MUFG Bank and the Japan International Cooperation Agency (JICA). For more information, visit www.greenclimate.fund/home.
About the Green Guarantee Company
The Green Guarantee Company, established in October 2021, is a private company which will guarantee climate bonds issued and listed on exchanges in the world's major global debt capital markets. The Green Guarantee Company will be pivotal to provide issuers from developing countries with improved access to long term hard currency debt financing, to combat the impact of climate change on their populations, particularly the poorest. The Green Guarantee Company is managed by the Development Guarantee group, with Cardano Development as an institutional shareholder. The Development Guarantee Group is the world's first dedicated guarantee platform with the mission to design, develop and operate guarantee solutions and companies that can effectively mobilise private sector capital towards funding development and sustainability challenges. For more information, visit: greenguarantee.co.