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Products & Benefits

GuarantCo provides guarantees to support projects and companies in order to raise debt financing for the development of infrastructure in emerging economies.

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.

The portfolio indicates the flexible nature of GuarantCo’s products. Please contact any of the advisors within The Manager to discuss further.

Structural Examples

GUARANTEE OVER LOCAL CURRENCY LOAN

GUARANTEE OVER LOCAL CURRENCY LOAN
Typically, this structure will involve a partial credit guarantee provided by GuarantCo (in collaboration with other guarantors if required) to the beneficiary or the provider of the debt. This guarantee will cover the non payment of scheduled debt service of the underlying loan between the beneficiary and the borrower up to the limit of the guarantee. A recourse agreement will be required between the borrower and GuarantCo to cover, amongst other provisions, the payment of fees to GuarantCo and the rights and obligations among the borrower, GuarantCo and the beneficiary following a call under the guarantee.
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GUARANTEE OVER LOCAL CURRENCY BOND

GUARANTEE OVER LOCAL CURRENCY BOND
This will involve a similar structure to a guarantee over a local currency loan except that the beneficiary will usually be the note trustee acting on behalf of all the noteholders.
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Benefits of Guarantees

For the sponsors and project developers

For Lenders

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