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

Product Name Partial Risk Guarantee
Link to Product Website
Provider Name GuarantCo
Product Definition A partial risk guarantee can cover the occurrence of certain specified risks. For example, such risks can include completion risk, liquidity risk and other risks which, without being covered by GuarantCo, would otherwise limit the finance available. GuarantCo can provide partial risk guarantees with the exception of political risk guarantees.


GuarantCo’s mission is to help procure long term local currency financing for infrastructure in the developing world. Accordingly, it has a flexible product that can potential absorb specific risks (through a partial risk guarantee) or a share of the general credit risk (through a partial credit guarantee). For example, such risks can include completion risk, liquidity risk and other risks which, without being covered by GuarantCo, would otherwise limit the tenor and or amount of finance available. GuarantCo can not provide political risk guarantees as a stand-alone product but political risks can be covered by a partial credit guarantee.

GuarantCo can provide a variety of other contingent products including, first loss guarantees, tenor extension or liquidity guarantees and can provide joint guarantees or counter guarantees as may be required for a particular project.

Product Type Partial Risk Guarantee
Defined Risks Covered Other Risks
More on Risks Covered
Eligible Form of Investments All
Bonds
Bank Loans
Non-Bank Loans
Shareholder Loans
Equity
More on Eligible Investments
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions n.a.
More on Eligible Countries
Eligible Applicants All
More on Eligible Applicants
Eligible Sector No Specific Sector
Maximum Tenor 15+ to 20 years
More on Maximum Tenor
Max. Absolute Amount (USD) 0 to 50 MM
More on Maximum Absolute Amount
Max. % of Project Costs Covered 100%
More on Maximum Project Costs Covered
Max. % of Export Content Covered Max./under 50%
Fees Market-based
Guarantee fees are set at a commercial rate to reflect the risk taken and are decided on a project-by-project basis. It would be typical to charge an up-front fee, stand-by fee for undrawn capacity, in addition to an annual guarantee fee.
More on Fees
Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Others: FMO Standards
More on Other Standards
Source(s) www.guarantco.com
For more information, contact Chris Vermont
Head of Debt Capital Markets, GuarantCo
Email: chris.vermont@frontiermarketsfm.com
Phone: +44 203 145 8601

Douglas (Pug) Bennet
Deputy Head, GuarantCo
Email: douglas.bennet@frontiermarketsfm.com
Phone: +44 203 145 8602
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name GuarantCo
Institution Type PUBLIC: Multilateral Development Bank
Ownership GuarantCo is a Mauritian company owned indirectly by the PIDG members through the PIDG Trust and, in the case of DGIS, through FMO (the Dutch development finance company).
Head Office Frontier Markets Fund Managers is the main point of contact 100 Cannon Street London EC4N 6EU
Provider Home Country United Kingdom
Rating n.a.
Main Risk Mitigation Products 1. Partial Credit Guarantees
2. Partial Risk Guarantees
3. Tenor Extension Guarantees
4. On-Demand Guarantees
Attachments GuarantCo Portfolio Presentation.pdf
Additional Links www.guarantco.com/news/kaluworks-press-coverage.aspx
www.guarantco.com/useful-links.aspx
www.guarantco.com/about-us/conference-presentations.aspx
Entered On: 04/02/2008 at 11:58 AM
Updated On: 03/27/2014 at 02:13 PM