Project detail - FRONTIER CLEARING CORPORATION B.V.

FRONTIER CLEARING CORPORATION B.V.

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Who is our client

Frontclear is an Amsterdam based company and is part of the Cardano Development Group. Frontclear is funded by a number of European development finance institutions, including the European Bank for Reconstruction and Development (EBRD), Proparco, The Currency Exchange Fund (TCX), the UK Department of International Development (DFID, through the Financial Sector Deepening Africa) and German Federal Ministry for Economic Cooperation and Development (BMZ). Frontclear’s guarantees are counter-guaranteed by KfW, a AAA-rated German development Bank.

Funding objective

Frontclear is a financial markets development company focused on catalyzing more stable and inclusive financial markets in emerging and developing countries. Frontclear facilitates more competitive access to interbank markets though issuance of Basel III compliant credit guarantees to cover a transacting institution’s (the Obligor) counterparty credit risk. Frontclear covers money market instruments including but not limited to repo’s, cross currency repo’s and derivative instruments.

Why we fund this project

The investment represents a significant increase in the capital of Frontclear and allows Frontclear to extend its efforts to support the development of more inclusive and more liquid interbank markets in emerging and frontier economies. Frontclear is a niche-player with a unique proposition. Given the company’s start-up nature, FMO is highly additional. Further value is added by enabling Frontlcear to access FMO’s network and knowledge such as FMO’s worldwide financial institution sector knowledge and client base. Frontclear’s product offering is complementary to FMO since it is highly beneficial to many of our financial institutions clients: whereas DFIs provide long-term financing, Frontclear offers short – term money market solutions. Finally, Dutch interest is clearly represented in this transaction.

More investments

Date Total FMO financing
12/2/2019 USD 30.00 MLN
Country
Global
Sector
Financial Institutions
Signing date
2/13/2017
Total FMO financing
USD 30.00 MLN
Fund
FMO
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)
C