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GuarantCo Management Company (GMC) has appointed Layth Al-Falaki as its new Chief Executive Officer of GuarantCo starting mid-January 2022. GMC is the manager of GuarantCo, a Private Infrastructure Development Group (PIDG) company.
GuarantCo, a Private Infrastructure Development Group (PIDG) company, has announced its intention during COP 26 in Glasgow to allocate approximately USD 250 million of guarantee capacity towards accelerating climate action in India and Vietnam. This was also mentioned by the UK Prime Minister as part of the UK Clean and Green Initiative.
The main focus of the workshop was to create a better understanding on Public Private Partnerships, project finance structures, assessing investment, fund, credit and political risks and support that can be provided by GuarantCo and other key stakeholders within the market.
The workshop acted as a catalyst for the development of effective and efficient project financing which helps support economic growth, develop sustainable and essential infrastructure and create more job opportunities in the Malawi.
The project will have a significant transformational impact in Bangladesh as it will set the tone for increased contribution of renewables in the energy mix of the country. Around 136,500 people will benefit from an improved quality of service: approximately 170 people were employed during construction and 70 people are currently employed during operational phase.
GuarantCo provided a contingent capital facility of up to PKR 8.25 billion (c USD 50 million) with a 23 year tenor to InfraZamin Pakistan to issue local currency credit guarantees against debt financing for infrastructure projects in renewable energy, healthcare, transport, and digital communications. InfraZamin Pakistan is an initiative set up by PIDG, with a PKR 8.25 contingent capital facility by GuarantCo, PKR 2.475 billion (c USD 15 million), equity from InfraCo Asia Investments and a USD 1 million PIDG Technical Assistance returnable grant, to establish a for-profit credit enhancement facility in Pakistan. The facility seeks to address gaps in the local infrastructure financing market through increased use of credit guarantees.
GuarantCo provided Acorn with a guarantee to support the KES 1.4 billion (c. USD 12.9 million) upsizing of the Medium Term Note (MTN) programme to finance the construction of two additional green-certified student accommodation sites in Nairobi. It is expected to expand Acorn’s bed capacity by nearly 50 percent to 7,295 beds. Acorn Project Two Limited Liability Partnership, the Issuer of the Acorn MTN programme, closed the second and final tranche on 16th July 2021 and raised KES 2.096 billion against the target of KES 1.438 billion, achieving a subscription rate of 146 percent.
GuarantCo provided PRAN Agro, part of PRAN-RFL Group, with a 100 percent guarantee of a BDT 2.1 billion (c. USD 25 million) on-shore bond with a seven year tenor to attract domestic institutional capital from Bangladesh and support PRAN Agro’s expansion plans. GuarantCo led with and enabled a pioneering and transformational structure for the bond realising various firsts for the Bangladeshi market: the first blended finance structured bond of its kind; the first to be subscribed by an international insurance company and the country’s first directly issued digitised bond under Private Placement of Debt Securities Rules; no development finance institution has ever guaranteed a bond of this kind in Bangladesh
GuarantCo’s first guarantee in Madagascar supports and crowds in local bank debt funding for the operational Ambatolampy solar plant developed by Green Yellow, a 20MW solar power plant which was the first grid connected solar plant in the country. The credit enhancement will also enable GreenYellow to accelerate investments in new greenfield projects that could contribute to Madagascar reaching its objective of an 80 percent renewable energy mix by 2030 and improving its energy security. Africa Guarantee Fund, supported by GuarantCo through a USD 50 million portfolio guarantee facility in 2016, provided a co-guarantee for MGA 14.8 billion (c. USD 3.8 million). With its ability to mitigate risks and lower the cost of financing, GuarantCo has played an active role in shaping the transaction, leading to additional local capital.
CRDB Bank is a leading bank with a focus on the infrastructure sector. This portfolio guarantee will create a risk-sharing partnership which will allow the bank to invest more in Tanzania’s infrastructure sector without breaching regulatory and capital limits set by the Bank of Tanzania. GuarantCo’s involvement does not stop with this transaction. It will also enable CRDB Bank to grow its loan portfolio and signify the beginning of a capacity building partnership whilst providing an opportunity to support the bank’s gender strategy. This important strategic partnership with CRDB, and GuarantCo’s first transaction in Tanzania, will allow GuarantCo to explore further innovative transaction structures to finance infrastructure projects in Tanzania in the longer term.
GuarantCo and the Asian Development Bank are co-financing a senior debt facility for Kacific to provide low cost, ‘direct to premises’, high-speed broadband internet connections across select Asian countries and the Pacific Islands. This is GuarantCo’s first credit enhancement support to a satellite financing opportunity. GuarantCo provided a USD 50 million partial credit guarantee to a private sector European institutional investor to support Kacific build, own and operate its first shared geostationary earth orbit, high-throughput satellite. The satellite was launched by SpaceX in December 2019 and became operational in early 2020.
GuarantCo has provided a XOF 14.2 billion (USD 23.8 million) Liquidity Extension Guarantee (LEG) to enable local commercial banks in Togo, including Orabank, to provide a 14 year tenor loan to KEP, a special purpose vehicle set up by Eranove to finance the construction of a 65MW natural gas-fired thermal plant and related infrastructure in the port area of Lomé, the capital of Togo. This transaction is GuarantCo’s first guarantee in Togo and the first LEG to extend the maturity of a transaction with a 7-year tenor for local commercial banks to 14 years. It is also the first infrastructure transaction to be financed mainly in local currency which, in combination with the extended tenor enabled by the LEG, helps to provide a competitive electricity tariff for the local population.
GuarantCo provided a USD 42.5 million, on-demand guarantee with a 5-year tenor supporting Classic Fashion Apparel Industry (Classic Fashion), Jordan’s largest garment manufacturer. With GuarantCo’s guarantee supporting Classic Fashion, Standard Chartered Jordan will be able to extend an additional facility. The proceeds of the loan will be used for the construction of a textile processing mill, a centralised cloth cutting station, new laundry facility, and a carton and poly bag factory. GuarantCo, through the PIDG Technical Assistance Facility (TAF), is providing a grant to co-finance the training activities at the “Centre for excellence in garment manufacturing” which is a project of the Jordan Ministry of Labour and Classic Fashion Apparel Industry Ltd. The training will provide the required skills for Jordanian youths and Syrian refugees, particularly women, and increase their employment opportunities in the Jordanian garment sector.
