GuarantCo

GuarantCo, a part of the Private Infrastructure Development Group (PIDG), is a specialist provider of credit guarantees focused on mobilizing local currency investment for infrastructure projects in low-income countries across sub-Saharan Africa and South and Southeast Asia. Established with the backing of the governments of the UK, Switzerland, Australia, Sweden, and the Netherlands, its core mission is to enable sustainable infrastructure development by de-risking investments and strengthening local capital markets. Rather than direct equity investments, GuarantCo provides guarantees that allow local banks, institutional investors, and capital markets to lend to critical infrastructure projects, which might otherwise be deemed too risky or lack suitable long-term financing options.

The firm's unique value proposition lies in its commitment to local currency financing. By providing guarantees in local currency, GuarantCo helps mitigate foreign exchange risk for borrowers and lenders, thereby making projects more viable and sustainable. This approach not only facilitates the flow of capital into essential sectors like power, transport, water, telecommunications, and urban development but also fosters the growth and deepening of domestic financial markets in the regions it serves. Their involvement helps bridge the gap between the significant infrastructure financing needs of developing countries and the availability of long-term, appropriate funding.

Since its inception, GuarantCo has demonstrated a substantial impact, supporting 107 transactions and successfully mobilizing over $5.3 billion of private sector investment into infrastructure projects. A significant portion of this capital, specifically 63%, has been mobilized in local currency, underscoring their dedication to mitigating currency risks and fostering local financial market development. GuarantCo typically provides guarantees ranging from $10 million to $100 million, with tenors extending up to 20 years, tailored to the long-term nature of infrastructure investments. Their strategic interventions play a crucial role in unlocking private capital for projects that are vital for economic growth and poverty reduction in some of the world's most challenging markets.