GuarantCo seeks to bridge the gap between the financial requirements of a particular project or corporate and the financial terms available from the market. Often projects may struggle to obtain debt finance in sufficient quantum or of a sufficient tenor, whether due to certain specific risks or market constraints. This can be overcome through the use of an appropriately structured guarantee, particularly one that transfers risk rather than just acts as a mitigant. Such guarantees can be used to enable direct lending from banks/ Financial Institutions or capital market issuances.
To meet the specific requirements of a particular financing, GuarantCo's guarantee product is deliberately flexible rather than a standard form that may, or may not, be appropriate. GuarantCo’s business model has been structured to allow for risk transfer through its guarantee rather than following a model more typical of an insurance company, which offers risk mitigation rather than risk transfer.