Sustainability Linked Bond Consultant (Remote)

Based in Seoul, The Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities.

 

BACKGROUND

In its updated NDC, submitted to the United Nations Framework Convention on Climate Change (UNFCCC), the Government of Paraguay seeks to cut emissions by 20% by 2030, compared to business as usual (BAU) scenario. Ten percent of this target is conditional to the access of external finance from development partners and developed economies Moreover, the NDC defined 25 objectives to strengthen the adaptation capacity of seven prioritized sectors for their social, economic and environmental relevance.

In this context, the Agencia Financiera de Desarrollo (AFD), Paraguay’s national development bank,in collaboration with GGGI, is exploring alternative capital raising mechanisms to increase the concessionality of its green and social credit programs in order to increase its financing of climate change mitigation and adaptation programs, while maximizing co-benefits for vulnerable groups.

 

The objective of the assignment is to design a blended finance mechanism allowing AFD to raise capital at below market to increase the concessionality of its financing for climate change mitigation and adaptation programs aligned to the NDC. while maximizing co-benefits for vulnerable groups.

The foreseen blended finance instrument consists of a sustainability-linked bond (SLB) to be issued by AFD with a partial credit guarantee from the Green Climate Fund. The SLB bond shall have a coupon step-up and step-down embedded into its structure, which will be activated upon the achievement of pre-established environmental KPIs. It is expected that the combination of GCF’s guarantee and SLB structure will reduce AFD’s cost of capital, allowing to reduce lending rates to priority environmental and social programs and credit lines.  

 The consultant shall be responsible to deliver the following:

-  Design of blended finance mechanism

-  Identification and prioritization of AFD’s existing green and social credit programs to be financed by the blended finance mechanism

 

Deliverable 1: Design blended finance mechanism

The consultant shall develop a report outlining the following information:

• Alternative structures of the blended finance mechanism (at least 2)
• Alternative sustainability-linked bond’s key performance indicators and targets
• Implementation arrangements and flow of finance
• Terms and conditions of GCF guarantee and AFD’s SLB loan based on GCF’s publicly available terms and conditions and AFD’s bond issuance experience
• Define and justify the level of concessionality of the instrument

The deliverable must be approved by GGGI Project Manager.

Deliverable 2: Identification and prioritization of AFD’s existing green and social credit programs to be financed by the blended finance mechanism

The consultant shall develop a report outlining the following information:

• Review of AFD´s existing credit programs (at least 4), highlighting the following:
  • Environmental and/or social impact on a USD basis;
  • GHG emissions reduction potential on a USD basis;(This must be primarily aligned to the NDC’s mitigation measures, but not exclusively).
  • Potential of adaptation capacity on a USD basis;(This must be primarily aligned to the NDC’s adaptation measures, but not exclusively)
  • Economic / Environmental / Gender co-benefits on a USD basis (if applicable);
  • Target beneficiaries.
  • Justification of which of AFD’s existing credit programs is most aligned with the GCF’s impact indicators

The deliverable must be approved by GGGI Project Manager.

Implementation arrangements and monitoring.

The consultant is expected to have weekly interactions with GGGI Project Manager. During the meeting, the consultant will be asked to report on progress against the contractual objectives, activities, and milestones. The consultant shall communicate any deviation from the Workplan to GGGI Project Manager.

 

PAYMENT SCHEDULE

Deliverable	Delivery Date	Value (% of the total payable)
Deliverable 1: Design blended finance mechanism	November 30, 2022	50%
Deliverable 2: Identification and prioritization of AFD’s existing green and social credit programs to be financed by the blended finance mechanism	December 19, 2022	50%

 

• Bachelor’s degree in economics, Finance, Business Administration or other related fields
• An advanced degree in Finance, Economics or a relevant field is desired
• At least 5 years of sustainable or climate finance experience, preferably in financial institutions or development agencies
• Experience working with GCF-related projects or a relevant field is a plus.
• Understanding of green finance and sustainable financial instruments (bonds, grants, debt, guarantees and equity)
• Familiarity with Paraguay’s public finance ecosystem and policies is a strong plus
• Experience working in Paraguay is a strong plus
• Understanding of the investment management industry with extensive experience with institutional grade clients
• Complete English and Spanish proficiency  

 

ADMINISTRATIVE INFORMATION  

The Consultant reports to the GGGI Project Manager. This is a home-based position.

Date to close is listed in Korean Standard Time (KST). Applications submitted after the deadline will not be considered.  

A consortium, or a firm may not be engaged for the individual consultant assignment.  

 

GGGI as an institution abides by its project-level Sustainability and Safeguards Rules (SSR) for all projects aligned with international standards for Environmental and Social Safeguards. The SSR is aligned with commonly recognized international standards for Environmental and Social Safeguards (ESS), i.e. the WB Performance Standard, that ensure project level safeguarding of communities and people impacted by GGGI activities. GGGI has integrated project level Environmental and Social Safeguards into its Project Cycle Management (PCM) with mandatory Preliminary Gender and Social Assessments and ESS Screening of all projects to identify and manage risks.

In addition, GGGI’s Gender Equality and Social Inclusion Strategy 2021-2025 provides a framework toward achieving the principle of “Leaving No One Behind” in the transformation towards green growth, guiding GGGI's approaches to the mainstreaming of gender equality and poverty reduction in GGGI Colombia´s Program. This also includes the implementation of the GGGI Gender Equality and Poverty Reduction Policy Markers on all projects. GGGI’s Corporate Results Framework requires gender disaggregated indicators for participation in GGGI Capacity Building events.

GGGI’s Child Protection Rules and GGGI Rules on Sexual Exploitation ensure safeguarding of children impacted by GGGI activities or in contact with GGGI contracted personnel, with GGGI taking a zero-tolerance approach to child exploitation. GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child. All procedures mentioned above are accompanied by guidelines and capacity building efforts. GGGI also provides a work environment that reflects the values of gender equality, teamwork, embracing diversity in all its forms, integrity and a healthy balance of work and life. We are committed to maintaining our balanced gender distribution and therefore encourage women to apply. GGGI promotes equal opportunities for all including persons with disabilities.

 

Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.