African Development Bank Room2Run
The Room to Run Sovereign program is a balance sheet optimization transaction launched at COP26, through which a US$ 2 billion guarantee provided by the UK Government (US$ 1.6 billion) and City of London insurers (US$ 400 million) enables the African Development Bank to provide up to an additional US$ 2 billion of climate finance to Africa by 2027, split between adaptation and mitigation. By assuming credit exposure on the Bank’s sovereign portfolio, the insurance guarantee unlocks lending capacity for nature-positive investments. In Benin, US$ 129 million funded climate adaptation activities including 100km of stormwater drainage infrastructure and reforestation of 17 hectares. In Tunisia, up to US$ 87 million supports climate-resilient agriculture for 250,000 cereal farmers facing water stress.