RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Policy-Based Guarantee
Link to Product Website
Provider Name AfDB (African Development Bank)
Product Definition Policy Based Finance. A special example of a Partial Credit Guarantee is the Policy Based Guarantee (PBG), which can be structured to cover the full risks of portions of sovereign borrowings from private creditors. These guarantees can help improve sovereign’s access to capital markets to raise financing in support of agreed structural, institutional and social policy reforms. Given that PBGs are considered as an alternative or supplement to adjustment loans, eligible client countries should have demonstrated a strong track record of performance.
Product Type Partial Credit Guarantee
Defined Risks Covered Comprehensive Risk
Eligible Form of Investments Bonds
Bank Loans
Non-Bank Loans
Shareholder Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions
Algeria   Angola   Benin  
Botswana   Burkina Faso   Burundi  
Cameroon   Cape Verde   Central African Republic  
Chad   Comoros   Congo, Democratic Republic of  
Congo, Republic of   Djibouti   Egypt  
Equatorial Guinea   Eritrea   Ethiopia  
Gabon   Gambia   Ghana  
Guinea   Guinea Bissau   Ivory Coast  
Kenya   Lesotho   Liberia  
Madagascar   Malawi   Mali  
Mauritania   Mauritius   Morocco  
Mozambique   Namibia   Niger  
Nigeria   Rwanda   Sao Tome and Principe  
Senegal   Seychelles   Sierra Leone  
Somalia   South Africa   Sudan  
Swaziland   Tanzania   Togo  
Tunisia   Uganda   Zambia  
Zimbabwe  
Eligible Applicants All
Eligible Sector n.a.
Maximum Tenor 15+ to 20 years
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered 25+% to 50%
Max. % of Export Content Covered Max./under 50%
Fees Market-based
n.a.

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Others:
Source(s) n.a.
For more information, contact
Director, Private Sector Services Department, AfDB (African Development Bank)
Email: private-sector@afdb.org
Phone: 216 71 850 270
Attachments Bank Policy on Guarantees.PDF
Financial Products - Offered by the African Development Bank-1.pdf
Additional Links n.a.
Deals n.a.

Provider Name AfDB (African Development Bank)
Institution Type PUBLIC: Multilateral Development Bank
Ownership n.a.
Head Office Statutory Headquarters Rue Joseph Anoma, 01 BP 1387 Abidjan 01 Côte d'Ivoire
Provider Home Country Cote dIvoire
Rating n.a.
Main Risk Mitigation Products Partial Credit Guarantee (AfDB)
Policy-Based Guarantee (AfDB)
Sub-sovereign Finance (AfDB)
Attachments n.a.
Additional Links
Entered On: 11/02/2007 at 03:44 PM
Updated On: 02/09/2012 at 03:30 PM