GUARANTCO LTD.Status: Completed investment
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Who is our customer
GuarantCo ltd (GCO) is part of a broad multi-donor initiative, developed by the Private Infrastructure Development Group (PIDG) of which the principal donors are DFID (UK), SECO (Swiss), SIDA (Sweden), Australian Aid, and DGIS (Netherlands). GCO was established to provide local currency guarantees to companies and infrastructure projects in emerging markets. GCO has high external ratings by Fitch (AA-, stable) and Moody’s (A1, stable).
What is our funding objective?
Credit guarantee schemes are widely acknowledged to be one of the most market-friendly solutions to help overcome major barriers to credit for (infrastructure) projects and businesses in emerging markets. The guarantees essentially function (i) as credit enhancements in order to facilitate investments, (ii) stimulate local capital markets development and investments by a.o. local FIs and IFIs, and (iii) reduce project risk by eliminating the FX risk.
Why do we fund this investment?
GuarantCo has a solid pipeline of projects thereby anticipating to grow the guarantee portfolio strongly the coming 5 years. Overall GCO will be much better positioned to pursue growth with continued FMO involvement. GCO is still perceived to be a relative newcomer in its markets (external ratings for <2yrs) and as such local lenders as well as the external rating agencies take great comfort from the FMO involvement and brand name.
- Infrastructure, Manufacturing and Services
- Effective date
- End date
- Total FMO financing
- USD 30.00 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)