Project detail - GUARANTCO LTD.


Status: Completed investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

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
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)