Deutsche Bank & The Development Guarantee Group sign Memorandum of Understanding to tackle climate financing gap for developing countries
Deutsche Bank today announced it has signed a memorandum of understanding with the Development Guarantee Group (“DGG”). Under the agreement, Deutsche Bank will act as an Origination Partner for the Green Guarantee Company (“GGC”), which will be managed by DGG. GGC is a specialist guarantor for climate mitigation and adaptation projects in developing countries.
Claire Coustar, global head of ESG FIC, Deutsche Bank said: “As we work towards the critical goal of keeping warming to 1.5 degrees, there is a real need for greater mobilisation of private capital to emerging and developing countries. The guarantees that the GGC provides make green bonds and loans issued to finance green projects in developing countries investment grade, and therefore more compelling to a broader group of global investors.”
She continued: “As a founding signatory to the Net Zero Banking Alliance and contributor to the GFANZ taskforce ‘Mobilising Private Capital to EM&DCs’, Deutsche Bank understands the transition funding needs present in the global emerging markets. We look forward to our partnership with the Green Guarantee Company to facilitate access to long-term, cost efficient funding for our clients.”
Lasitha Perera, Co-Founder, The Development Guarantee Group said: “We are delighted to be partnering with Deutsche Bank and to benefit from its extensive experience in delivering innovative financing solutions for its clients in emerging and developing countries as well as global institutional investors. Climate-related infrastructure in global emerging markets represents a significant opportunity for global institutional investors.”
She added “However, this opportunity remains relatively unexplored due to a perception of risk that is usually higher than the actual reality on the ground. Addressing this information asymmetry by providing guarantees to global institutional investors is how the Green Guarantee Company is looking to work with Deutsche Bank to close the existing climate finance gap and contribute to protecting our planet.”
Please use the contacts on the right, or:
The Development Guarantee Group Media Relations Maria-Pia Kelly Communications Manager
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement.
Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission.
Such factors are described in detail in our SEC Form 20-F of 21 March 2021 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir
About the Development Guarantee Group
The Development Guarantee Group (“DGG”) was founded by Boo Hock Khoo, Jean-Pierre Sweerts and Lasitha Perera and includes Cardano Development as an institutional shareholder, thereby uniting the collective experience of a global network of experts in setting up and running guarantee companies and programmes focused on addressing development challenges globally.
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.
The first company housed under the Development Guarantee Group is the Green Guarantee Company (“GGC”), which is a specialist guarantor for climate mitigation and adaptation projects in developing countries. It aims to help corporate and sub-national borrowers access long-term hard currency debt capital from the international bond markets with its guarantee.
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Deutsche Bank today announced it has signed a memorandum of understanding with the Development Guarantee Group (“DGG”). Under the agreement, Deutsche Bank will act as an Origination Partner for the Green Guarantee Company (“GGC”), which will be managed by DGG. GGC is a specialist guarantor for climate mitigation and adaptation projects in developing countries.
Claire Coustar, global head of ESG FIC, Deutsche Bank said: “As we work towards the critical goal of keeping warming to 1.5 degrees, there is a real need for greater mobilisation of private capital to emerging and developing countries. The guarantees that the GGC provides make green bonds and loans issued to finance green projects in developing countries investment grade, and therefore more compelling to a broader group of global investors.”
She continued: “As a founding signatory to the Net Zero Banking Alliance and contributor to the GFANZ taskforce ‘Mobilising Private Capital to EM&DCs’, Deutsche Bank understands the transition funding needs present in the global emerging markets. We look forward to our partnership with the Green Guarantee Company to facilitate access to long-term, cost efficient funding for our clients.”
Lasitha Perera, Co-Founder, The Development Guarantee Group said: “We are delighted to be partnering with Deutsche Bank and to benefit from its extensive experience in delivering innovative financing solutions for its clients in emerging and developing countries as well as global institutional investors. Climate-related infrastructure in global emerging markets represents a significant opportunity for global institutional investors.”
She added “However, this opportunity remains relatively unexplored due to a perception of risk that is usually higher than the actual reality on the ground. Addressing this information asymmetry by providing guarantees to global institutional investors is how the Green Guarantee Company is looking to work with Deutsche Bank to close the existing climate finance gap and contribute to protecting our planet.”
Please use the contacts on the right, or:
The Development Guarantee Group
Media Relations
Maria-Pia Kelly
Communications Manager
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement.
Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission.
Such factors are described in detail in our SEC Form 20-F of 21 March 2021 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir
About the Development Guarantee Group
The Development Guarantee Group (“DGG”) was founded by Boo Hock Khoo, Jean-Pierre Sweerts and Lasitha Perera and includes Cardano Development as an institutional shareholder, thereby uniting the collective experience of a global network of experts in setting up and running guarantee companies and programmes focused on addressing development challenges globally.
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.
The first company housed under the Development Guarantee Group is the Green Guarantee Company (“GGC”), which is a specialist guarantor for climate mitigation and adaptation projects in developing countries. It aims to help corporate and sub-national borrowers access long-term hard currency debt capital from the international bond markets with its guarantee.
Further links on the topic
Deutsche Bank Investment Bank
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