Guarantee over a Local Currency Loan

Typically, this structure will involve a partial credit guarantee provided by GuarantCo (in collaboration with other guarantors if required due to the size of the facility) to the beneficiary or the provider of the debt.  This guarantee will cover the non payment of scheduled debt service under the underlying loan or facility agreement between the beneficiary and the borrower up to the limit of the guarantee.  A recourse agreement will be required between the borrower and GuarantCo to cover, amongst other provisions, the payment of fees to GuarantCo and the rights and obligations among the borrower, GuarantCo and the beneficiary following a call under the guarantee.  GuarantCo provided such a guarantee in the Celtel Tchad transaction.