Amundi has been appointed to run the GGBI fund, the latest launch from the Brussels-based Global Green Bond Initiative.
Launched on Monday (27 April), the ‘public-private’ investment vehicle – which combines capital from both private investors and government entities – will aim to mobilise private capital, targeting a fund size of €3bn.
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The fund will leverage up to €1bn in equity from multilateral development banks – which provide financing for economic and social development projects – as well as development finance institutions – which are government-backed organisations that provide capital to private-sector projects. It will aim to raise a further €2bn from private investors.
The GGBI is a coalition aiming to use private institutional capital to fund climate and environmental projects across European Union partner countries, with a focus on emerging markets.
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Equity investors in the fund will include the European Investment Bank, the Spanish Government, Cassa dei Depositi Prestiti, European Bank for Reconstruction and Development, Dutch entrepreneurial investment bank FMO and the Government of the Grand Duchy of Luxembourg, among others.
Additional funding is expected from the Green Climate Fund later this year, one the formal documentation process has been completed.