Company Research Report: GuarantCo

Company Overview

• Name: GuarantCo

• Mission: Enabling sustainable infrastructure in Africa and Asia through local currency credit solutions, which unlock the potential of local capital markets and help close the infrastructure funding gap in lower-income countries.

• Founded: 2005

• Founders: No information is available.

• Key People: No information is available.

• Headquarters: No information is available.

• Number of Employees: No information is available.

• Revenue: No information is available.

• Known For: Providing innovative local currency credit solutions that facilitate the finance of essential infrastructure projects, boost economic growth, improve quality of life, alleviate poverty, and align with the United Nations’ Sustainable Development Goals.

Products

Overview

GuarantCo provides a suite of local currency credit solutions and guarantees, bridging the gap between the project financial requirements and the financial terms available in the local market.

Product Descriptions and Features

1. Local Currency Credit Solutions:

• Description: Offers guarantees that make local currency infrastructure projects more bankable by transferring risk away from financiers and towards entities with stronger credit ratings.

• Key Features:

• Risk Transfer: Helps financiers by assuming risk, rather than mitigating it.

• Capital Market Engagement: Assists local banks and institutional investors to participate in financing long-term infrastructure projects.

• Flexible Offerings: Tailored products such as full and partial credit guarantees, liquidity extensions, portfolio, and framework guarantees among others.

2. Guarantee Over Local Currency Loan:

• Description: A partial credit guarantee structure that covers the non-payment of scheduled debt service of the underlying loan.

• Key Features:

• Collaborations with other guarantors.

• Requires a recourse agreement with the borrower.

3. Guarantee Over Local Currency Bond:

• Description: Similar to a loan guarantee, but involves note trustees acting on behalf of noteholders.

4. Guarantee Benefits:

• For Financiers:

• Risk transfer to entities rated AA- / A1.

• Efficient capital treatment.

• Expansion into sustainable long-term finance.

• For Borrowers/Issuers:

• Signals financial robustness and attracts new capital pools.

• For Suppliers:

• Offers more flexibility and can accelerate project mobilization.

Recent Developments

Recent News and Achievements

• February 2025: Standard Chartered provides a standby liquidity facility to support GuarantCo's mission in Africa and Asia.

• January 2025:

• GuarantCo offers a partial guarantee to HSBC India for a loan to Arya.ag, enhancing liquidity in the agricultural sector.

• Signed a framework agreement and completed the first transaction with CGCC to accelerate infrastructure investment in Cambodia.

• December 2024: Partnered with British International Investment on a landmark $100 million deal to unlock $500 million in renewable power in South Africa.

• November 2024: Issued a VND 1,000 billion guarantee over green bonds for Vietnam’s aquaculture infrastructure, marking a first in Asia.

New Products and Features

• 2023: Launch of the first syndication transaction, electric vehicle (EV) guarantee (Spiro), and transactions under the Axis Bank framework.

• 2022-2023 Milestones:

• First guarantee transactions in Cambodia, Cote d’Ivoire, and Benin.

• Creation of the first InfraCredit Nigeria counter-guarantee.

Partnerships and Collaborations

• Ongoing Partnerships:

• Collaboration with international banks like Standard Chartered and HSBC.

• Strategic agreements and transactions in synergy with local entities in countries like India, Cambodia, and South Africa.

Conclusion

GuarantCo has established itself as a pivotal player in enabling infrastructure financing in lower-income countries through innovative local currency solutions and strategic alliances. The company continues to expand its portfolio while contributing significantly to sustainable economic development across Africa and Asia.