Tenor Extension Guarantees

The length of tenor can be one of the key limitations experienced by project developers seeking local currency financing.  By covering certain risks GuarantCo can help extend tenors to more appropriately match the financing requirements of the project developer.  For example, assume the project developer is seeking ten year money but a local bank is only able to provide 7year money.  The loan can be structured as a ten year loan with GuarantCo providing a guarantee for the repayment of all outstanding debt in year 7.  The fees and margin payable to the local bank and GuarantCo would be structured in order to provide an incentive for the local bank to continue with the financing for the full ten years.