Green Guarantee Company has completed its first two transactions, mobilizing $70 million to support electricity access projects under Mission 300. The Africa-wide electrification initiative, led by the World Bank and the African Development Bank, aims to connect 300 million people to electricity by 2030.
The deals mark the first completed transactions by Green Guarantee Company, which presents itself as the world’s first guarantor dedicated to climate finance in emerging markets. The London-based company provides guarantees rather than direct loans, helping reduce risk for investors and enabling projects to access international capital.
The first transaction is a $20 million framework guarantee provided to Bank of Africa UK. This support will finance mini-grid power systems in Nigeria under the DARES programme, which is being implemented with the Nigerian government and the Rural Electrification Agency.
The Nigeria mini-grid financing is expected to provide new or improved electricity access to around 340,000 people. It will also support the installation of 13 megawatts of renewable energy capacity and help avoid an estimated 250,000 tonnes of carbon dioxide emissions each year.
The second transaction is a $50 million guarantee backing a green bond listed on the London Stock Exchange. The proceeds will support securitization vehicles established by African Frontier Capital, focusing on receivables linked to pay-as-you-go solar home systems.
This structure allows solar home system receivables to be converted into securities that can be sold to investors. The bond was arranged by Standard Chartered and attracted institutional investors from the United Kingdom and the United States.
The off-grid solar transaction is expected to expand electricity access to about 4.3 million people across sub-Saharan Africa. It demonstrates how private capital can be mobilized at scale to support decentralized renewable energy solutions.
The announcement comes as Mission 300 reaches an early milestone. According to the African Development Bank, more than 50 million people have already been connected to electricity across 40 African countries, though nearly 600 million Africans still lack reliable access.
Green Guarantee Company’s approach is designed to attract private investment into renewable energy projects that may otherwise be viewed as too risky. By providing guarantees, the company helps reduce perceived risk and encourages investors to support climate and energy access projects.
The company currently has a guarantee capacity of $1 billion and is rated BBB by Fitch. Its backers include the Green Climate Fund, the UK government, Germany’s KfW, the Nigeria Sovereign Investment Authority and Norway’s Norfund.
Green Guarantee Company plans to expand significantly over the next decade, targeting $5 billion in guarantee capacity by 2035. Its early transactions are being presented as a model for scaling private investment in clean energy access across Africa.
Overall, the $70 million mobilized for Mission 300 projects shows how guarantees can help unlock capital for renewable energy in higher-risk markets. By supporting mini-grids and off-grid solar, the transactions aim to expand electricity access, reduce emissions and strengthen Africa’s clean energy transition.
