The Challenge
Developing countries face a financing gap of over US$4 trillion annually to meet their Sustainable Development Goals commitments – a shortfall driven by rising borrowing costs, declining international aid, and the weight of debt servicing that crowds out productive public investment. At the same time, the accelerating impacts of climate change are placing additional strain on sovereign balance sheets, increasing the cost of inaction while narrowing the fiscal space available to respond. Conventional debt instruments, designed primarily for capital access rather than development outcomes, are increasingly misaligned with the complex, long-term nature of the climate and sustainability challenges facing governments today.
We are at the forefront of developing thematic and performance-based instruments that deliver value for citizens and break the cycle of debt and debt servicing that is characteristic of conventional resource mobilisation.
We help sovereigns and governments assess their strategic funding options by identifying and evaluating new and existing sources of finance through a lens that centres debt sustainability and maximum impact. We assist in the design, evaluation, and optimisation of these options and, through deep relationships with donors and sponsors, provide critical credit enhancement support to facilitate transaction execution.
Developing the financing architecture and structuring appropriate instruments – including green bonds, sustainability-linked bonds, debt-for-nature swaps, and thematic bond frameworks – aligned with a nation's Nationally Determined Contributions and SDG commitments.
Developing green, sustainability, or transition bond or loan financing frameworks mapped to internationally recognised standards such as ICMA Green / Social Bond Principles, LMA Green / Social Loan Principles, and the Climate Bonds Standard. Working with relevant capital market authorities and stock exchanges to support the development of local regulatory environments conducive to sustainable finance transactions.
Supporting sovereign issuers through the preparation phase of financing transactions, covering financial modelling, documentation, exchange listing requirements, credit processes, and the identification and selection of underwriters, arrangers, and lenders.
Assisting in engagement with institutional investors, multilateral development banks, and capital markets - including roadshow preparation and support – to position sovereign issuers effectively for issuance and transaction closure.
Dedicated thematic bond frameworks for government issuers, aligned with ICMA Green / Social Bond Principles and structured around measurable environmental or development outcomes.
Financing structures that link sovereign debt relief to conservation spending commitments – reducing debt burdens while directing capital towards nature-positive outcomes.
Bonds with coupon rates linked to the achievement of defined sustainability performance targets, creating finance-related incentives for sustainability-focused actions.
Dedicated investment vehicles with specific environmental or development attributes - e.g., drought funds, nature bonds, and outcome- and results-based financing structures.
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