GuarantCo Ltd.

Published purpose

This project aims to enhance provision of affordable and sustainable infrastructure services in low-income countries and fragile states to combat poverty and help economies grow. GuarantCo, part of the Private Infrastructure Development Group (PIDG), addresses the shortage of long-term, patient funding, and the lack of local currency infrastructure financing and local capital market development in Africa and Asia. Project activities include: (1) providing expertise and financial services to structure contingent credit solutions, especially guarantees; (2) strengthening gender equality, inclusivity and development impact considerations in project design and (3) enhancing the capacity of local financial stakeholders, investors, and project companies to make investment ready projects. Infrastructure projects often face high perceived or real risks or market constraints, including potential losses from borrowing in foreign currencies, making it challenging to obtain sufficient, long-term debt finance. GuarantCo seeks to bridge the gap between a project’s financial requirements and the financial terms available from the market by using structured guarantees to help transfer risk, and use long-term patient funding. Its activities mobilize additional investment in low-income countries and fragile states towards the Sustainable Development Goals.