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

Product Name Guarantee
Link to Product Website
Provider Name PROPARCO (de Promotion et de Participation pour la Coopération Economique) - France
Product Definition The PROPARCO name acts as a solvability guarantee and facilitates the mobilisation of local currency resources by private sector borrowers (credit institutions or private companies), guaranteeing subscribers the repayment of the capital and interest of the corresponding loans.

1. Bond guarantee: PROPARCO offers a guarantee to savers (institutional investors holding liquidities or private individuals) who extend a loan to a bank issuing borrowings to refinance itself or to a company seeking resources to invest in a specific project,

2. Bank loan guarantee: PROPARCO guarantees the successful completion of loans that banking institutions with available liquidities may extend to other institutions to finance private sector companies,

3. Local currency loan guarantee: PROPARCO guarantees the successful completion of loans issued in local currency by banks to industrial and commercial companies to finance their manufacturing investment programme,

4. Liquidity guarantee of mutual funds, investment funds and local savings mobilisation funds: PROPARCO brings a liquidity guarantee to the various instruments of mobilisation of long-term resources intended to finance manufacturing investment, which has a direct impact on financial market intermediation.

Product Type Comprehensive Guarantee
Defined Risks Covered n.a.
Eligible Form of Investments Bonds
Bank Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions All
Eligible Applicants n.a.
Eligible Sector No Specific Sector
Maximum Tenor 0 to 5 years
Max. Absolute Amount (USD) 100+ to 250 MM
Max. % of Project Costs Covered Max./under 25%
Max. % of Export Content Covered Max./under 50%
Fees Market-based

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: No
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Source(s) http://www.afd.fr/jahia/Jahia/site/proparco/lang/en/Accueil_PROPARCO
For more information, contact
Phone: + 33 1 53 44 31 08
Attachments n.a.
Additional Links issuu.com/objectif-developpement/docs/highlights_2012/1
Deals n.a.

Provider Name PROPARCO (de Promotion et de Participation pour la Coopération Economique) - France
Institution Type PUBLIC: Bilateral Development Agency
Ownership Owned by Agence Française de Développement (AFD), French financial organizations, International financial organizations, French companies, and Funds and ethical foundations.
Head Office 151, rue Saint Honoré 75001 Paris
Provider Home Country France
Rating n.a.
Main Risk Mitigation Products Equity Investment
Project Support Facilities
Attachments n.a.
Additional Links
Entered On: 11/03/2008 at 01:12 PM
Updated On: 05/02/2013 at 10:09 AM