GCPF Receives a First-Time Rating of A3 by Moody’s
Share
Zurich, 06 September 2024 – The Global Climate Partnership Fund (GCPF), managed by the Swiss impact asset manager responsAbility Investments AG, receives a first-time rating by Moody’s of A3.
The rating by Moody’s reflects the outlook of the Fund with respect to Noteholders, which are protected by a substantial layer of loss-absorbing equity by the Fund’s junior, mezzanine, and senior shareholders.
The A3 rating represents a stable outlook for the Fund that reflects Moody’s expectation that the Fund’s portfolio will continue to be managed in compliance with its mandate and risk ratios, and with no material deterioration of its asset quality, performance, and liquidity position. They anticipate GCPF will continue pursuing a managed growth strategy, backed by funding from new and existing highly-rated public sector investors. This reflects strong support from governments and development finance institutions (DFIs) for its mission to mitigate climate change, which aligns with the shareholders’ interest.
Moody’s highlights several factors that underpin its rating assessment of the Fund:
- Moderate capital adequacy that reflects modest leverage and a diversified portfolio balanced by low asset credit quality, which is intrinsic to its investment and loans in emerging markets.
- Solid liquidity and funding profile given that the Fund has good visibility and control over cash outflows and has a diversified and stable funding base, supported by an established group of investors;
- Solid member support, characterized by a diverse group of highly-rated public sector shareholders that strongly support the Fund’s mandate.
The full assessment by Moody’s can be found here.
About the Global Climate Partnership Fund (GCPF)
The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is an innovative public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20% are eligible for funding.
GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMU, the department for Business, Energy and Industrial Strategy (BEIS) of the UK, Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, Sparkasse Bremen, the European Investment Bank (EIB) and Heilsarmee.
About responsAbility Investments AG
responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.
Since its inception in 2003, responsAbility has deployed over USD 14 billion in impact investments. With over 270 employees collaborating across eight offices, as of 1 October 2023 the company manages USD 4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.
