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Proparco, the European Union and partners sign the Global Green Bond Initiative Fund to mobilise up to €20 billion for sustainable infrastructure

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Signing ceremony, Brussels - DR

Proparco announces its participation in the Global Green Bond Initiative (GGBI), a major European Union-backed public-private investment tool aiming to mobilise up to €20 billion of private capital for sustainable infrastructure projects in low and middle-income countries. As part of this initiative, Proparco is investing €50 million in the Global Green Bond Initiative Fund, a fund investing in green bonds issued by corporates, financial institutions and public issuers, including sovereign and sub-sovereign entities, across emerging and developing economies.

The GGBI Fund is one of the three pillars of the Global Green Bond Initiative, a flagship of the European Union's Global Gateway strategy. It aims to unlock up to €3 billion in green bonds in partner countries and help finance activities that support climate and environmental goals. The fund will invest exclusively in bonds issued in primary markets, prioritising first-time issuers like governments, local authorities and businesses. At least 20% of investments will target the world's least developed countries, with support for bonds in both local currency and euro. This will help strengthen local capital markets and promote the international use of the euro. As a leading worldwide green bond issuer, the EU will promote high environmental standards and share best practices with partner countries.

The GGBI Fund is expected to crowd in up to €2 billion from European and international private investors, leveraging approximately €1 billion in equity from public investors. Of this, close to €800 million will come from a consortium of European development finance institutions led by the European Investment Bank, alongside the European Bank for Reconstruction and Development, and development banks from Spain, Italy, the Netherlands, Germany and France. The European Commission will provide credit protection to the consortium through its European Fund for Sustainable Development Plus (EFSD+) Guarantee. This amount will be complemented by equity contributions from the Government of the Grand Duchy of Luxembourg, implemented via LuxDev, and later on with additional funding expected from the Green Climate Fund upon finalisation of the documentation process later this year. The fund will be managed by Amundi, the largest European asset manager.
 

The Global Green Bond Initiative

The Global Green Bond Initiative is a flagship initiative of the Global Gateway strategy that aims to mobilise up to €20 billion of private capital for large-scale sustainable infrastructure projects while fostering strong green bond markets in partner countries. It has three complementary pillars:

  • The GGBI Fund which mobilises private capital at scale towards sustainable investments in developing countries through green bonds;
  • A comprehensive Technical Assistance programme which will share EU expertise and support issuers in partner countries in designing and issuing both green bonds and projects; and
  • The Green Coupon Subsidy Facility which will help reduce borrowing costs for issuers facing particularly prohibitive interest rates, under specific circumstances. More specifically, with this Green Coupon Facility, the EU will then subsidise part of the coupons for green bond issuers who face very high interest rates. This will allow partner countries to grow on the green bond market much faster and raise the money they need for their people and their economy.
     

The GGBI Consortium

The GGBI consortium is led by the European Investment Bank and consists of the Spanish Agency for International Development Cooperation (AECID), the Italian Development Bank Cassa Depositi e Prestiti (CDP), the European Bank for Reconstruction and Development, the Dutch Entrepreneurial Development Bank FMO, the German Development Bank KfW, and the French DFI Proparco.

Addressing the climate finance gap

Through its participation, Proparco contributes to accelerating the development of green bond markets in emerging and developing countries, addressing the climate finance gap and supporting the transition towards low-carbon and climate-resilient economies.

This investment is fully aligned with Proparco’s strategic objective to “Protect the Planet”, under its 2023–2027 strategy, and with its commitment to fostering impact finance markets and mobilising private capital towards sustainable development.
 

Through the Global Green Bond Initiative, Proparco reinforces its commitment to scaling up climate finance in emerging and developing countries. By supporting the development of green bond markets, we are helping unlock private investment for projects that deliver both environmental and social impact.

Jean-Baptiste Sabatié

  • Deputy CEO of Proparco

With the Global Green Bond Initiative Fund, Europe underlines its leadership in sustainable finance. We will mobilise billions in private investment into our climate and environmental goals. Together with our partners we are reshaping how the world funds its future. This is more than finance; it’s a strategic choice to align economic resilience with climate justice – for our planet and for generations to come.

Ursula von der Leyen

  • President of the European Commission

Global Gateway

Global Gateway is the EU's strategy to boost smart, clean and secure links in digital, energy and transport, and to strengthen health, education and research systems worldwide.
It delivers high quality investments that meet the highest environmental, social and governance standards, ensuring sustainability and transparency for partners, people and the planet. 
 

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