Supporting long-term local currency debt solutions for infrastructure in frontier markets
- GuarantCo provides credit guarantees for long-term (5-20 years) local currency debt solutions to infrastructure in developing countries.
- It was established in 2006 and is managed by Cardano Development since 2016. GuarantCo is managed by a dedicated team of 24 professionals in London, Singapore and Nairobi.
- As at January 1, 2018, GuarantCo has received USD 324 million in risk capital, supporting a portfolio exposure capacity of USD 1 billion (equivalent) in aggregate local currency exposure (of which USD 554 active, in 15 countries in SUb-Saharan Africa and South & South East Asia). It is rated A1 by Moody’s and AA- by Fitch, as well as AAA by a number of domestic rating agencies in frontier markets.
- GuarantCo is a member of the Private Infrastructure Development Group, funded by the governments of Australia, the Netherlands, Sweden, Switzerland and the UK.
GuarantCo was established to help address and overcome existing constraints in the supply of local currency financing to privately-sponsored infrastructure projects and to help the development of local long-term institutional debt markets. Most of its transactions involve providing guarantees to de-risk long-term local currency debt provided by domestic and regional banks and/or domestic institutional investors (pension funds, Insurance companies and asset managers) to improve terms and access for private infrastructure companies.
GuarantCo has an ambitious target to have outstanding guarantees exceeding USD 1 billion by 2021.