NDF - Financing for climate change and development projects

African Guarantee Fund Green Guarantee Facility [NDF C88]

7.04.2016
The overall objective of the Green Guarantee Facility is to promote green growth and climate resilient development in African economies by catalyzing bank lending to SMEs for projects and investments linked to climate change adaptation and mitigation.

Regional Africa
African Guarantee Fund Green Guarantee Facility
Ref: NDF C88

NDF Finance: EUR 7.6 million
Project Period: 7 year lock-in period with option for phased exit thereafter
Partner Agency: African Guarantee Fund (AGF)
Implementing Agency: AGF

Objective

The AGF Green Guarantee Facility (GGF or Facility) will establish a climate-focused guarantee product available to small and medium-sized enterprises (SMEs) in Africa. It picks up on momentum from the 2015 Paris Climate Agreement and introduces a specialized green finance instrument designed to unlock finance for SMEs investing in low carbon, green growth and climate resilient development.

The Facility will be managed and administered by AGF, bringing together the NDF climate finance mandate with the proven AGF business model for improving access to finance for SMEs.

In the first 3 years of the Facility life, NDF’s equity subscription is expected to be fully committed, unlocking up to EUR 36 million, or approximately USD 40 million, in private commercial capital for green growth and achieving a 6:1 leverage ratio of NDF resources.

The Facility will target SME investments in sustainable energy, cleaner production, climate-smart agriculture and natural resource management and green services leading to improvements in overall sustainability of African economies and growth in green jobs, income and quality of life for low income communities across the continent.

Financing

Total NDF financing is EUR 7.6 million consisting of EUR 6 million in equity finance and EUR 1.6 million in grant finance.

NDF Contact

Program Manager Charles Wetherill
Telephone +358 10 618 002

More information