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

Product Name Partial Credit or Risk Guarantee
Link to Product Website
Provider Name GuarantCo
Product Definition GuarantCo can provide partial credit guarantees and 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.

Additional Details:

Defined Risks Covered:
Other
Non-payment due to general credit reasons or specific risk reasons

Eligible Forms of Investment:
All
Bonds
Bank Loans
Non-Bank Loans
Some subordinated debt products

Eligible Currency of Underlying Investment Covered by this Product: Local Currency of developing host country. For certain fragile and conflict-affected countries, dollar guarantees are possible

Eligible Countries & Regions: DAC I, II and III countries

Max. Absolute Amount (USD): 5 to 30 MM

Product Type Partial Credit Guarantee
Defined Risks Covered Other Risks
More on Risks Covered
Eligible Form of Investments All
Bonds
Bank Loans
Non-Bank Loans
More on Eligible Investments
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions East Asia and Pacific
Eastern Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa
More on Eligible Countries
Eligible Applicants All
More on Eligible Applicants
Eligible Sector Other Sector
Maximum Tenor 10+ to 15 years
More on Maximum Tenor
Max. Absolute Amount (USD) 0 to 50 MM
More on Maximum Absolute Amount
Max. % of Project Costs Covered 25+% to 50%
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. GuarantCo does not charge a keep-whole premium should the guarantee be cancelled
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: IFC Performance Standards
More on Other Standards
Source(s) www.guarantco.com
For more information, contact Chris Vermont
Head of GuarantCo, GuarantCo
Email: chris.vermont@frontiermarketsfm.com
Phone: +44 203 696 1862

Douglas (Pug) Bennet
Deputy Head of GuarantCo, GuarantCo
Email: douglas.bennet@frontiermarketsfm.com
Phone: +44 203 696 1863
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 12:22 PM
Updated On: 03/31/2014 at 07:10 AM