BPL Global has been appointed as insurance broker for the Green Guarantee Company to provide risk transfer solutions for green financing innovation in emerging markets

BPL Global, in partnership with the Development Guarantee Group, is pleased to announce its support of the Green Guarantee Company (GGC), the very-first specialist guarantor backing climate bonds issued in developed markets by issuers from the developing world.

The GGC will give emerging market debt issuers access to new investor pools by increasing the creditworthiness of an issuance by its guarantee; thereby improving capital flows between developed and developing markets in support of climate objectives. It was launched at the UN Climate Change Conference of the Parties (COP26) on November 2nd 2021 and becomes operational in 2022.

Mobilising private sector support for the venture is critical to the GGC’s success. As such, BPL Global has been driving interest among the private insurance market to provide capacity for relevant political risks linked to the GGC’s guarantees.

Together with Sovereign Risk Insurance and Liberty Specialty Markets as lead insurance partners, and with support from the Ascot Group as insurance partner, BPL Global developed a Political Risk Insurance Framework for the initiative which will provide a basis upon which insurers can support the GGC.

The partnership represents an important step in the development of new risk transfer solutions to provide critical support for green investments in the emerging markets.

Gregory King-Underwood, Director, Global Portfolio Solutions and Reinsurance at BPL Global comments: “We’re proud to be part of this initiative with the Green Guarantee Company to enable sustainable projects from emerging markets to access a much wider pool of investors. To date, BPL Global has been engaging with the credit and political risk insurance market to support this exciting new development. Moving forward, we will be working alongside the Green Guarantee Company to navigate and overcome the complex insurance challenges of the partner projects. As the leading specialist broker in credit and political risk insurance, we hope our collaboration with the Green Guarantee Company will demonstrate how insurance can provide long-term, tailored support to the financing of sustainable projects, where such coverage is seamlessly matched to the projects’ underlying risk profiles.”

Boo Hock Khoo, Co-Founder at The Development Guarantee Group adds: “The ambition of the Green Guarantee Company is to become a champion for mobilising and crowding-in global capital market investors into providing the climate finance urgently needed to help developing countries address the climate change challenge. The insurance industry represents a global capital pool of more than USD 30 trillion and therefore will be a key strategic partner to the Green Guarantee Company, both as an investor in the climate bonds that it will guarantee and as a risk-sharing partner through the private credit insurance (CPRI) market. We are grateful for the support of BPL Global in helping the Green Guarantee Company to establish a relationship with the CPRI market at such an early stage of its development.”