Inter-American Development Bank
Partial Credit Guarantees
Instrument description
The Inter-American Development Bank (IADB) offers partial credit guarantees (PCGs) to reallocate project risks, improve terms for project financing and contribute to attracting investments in Latin America and the Caribbean. PCGs protect lenders against debt service default on a share or on the entire project costs. For public sector projects, PCGs can be designed to address specific debt repayment structures and a range of risk categories, including financing, construction and operation.
PCGs can be used for:
- Enhancement of the issuance of bonds
- Project finance
- Asset-backed securities
- Securities backed by future flows
Eligible projects and transactions
The PCG instrument is part of IADB´s Flexible Guarantee Instrument and applies for Sovereign Guaranteed operations.
Eligible regions
IADB member countries.
Key features
- Size of coverage: Up to 100 per cent of costs. Adjusted to project specificities to optimize impact on the underlying instrument’s rating.
- Tenor of coverage: Maximum guarantee tenor of 25 years for investment operations and 20 years for policy-based interventions in countries that receive blended loans.
- Costs: Pricing neutrality applies between guarantees and loans. Details: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=40852576
- Currency: USD
Political Risk Guarantees
Instrument description
The Inter-American Development Bank (IADB) offers political risk guarantees (PRGs) to re-allocate project risks, improve terms for project financing, and contribute to attracting investments in Latin America and the Caribbean. PRGs cover non-performance risks by public sector borrowers on certain contractual obligations towards a private party, which could result in debt payment default. Covered risks include restrictions on currency conversion and transfer, and contract frustration.
PRGs can be used for:
- Enhancement of the issuance of bonds
- Project finance
- Asset-backed securities
- Securities backed by future flows
Eligible projects and transactions
The PCG instrument is part of IADB´s Flexible Guarantee Instrument and applies for Sovereign Guaranteed operations.
Eligible regions
IADB member countries.
Key features
- Size of coverage: Up to 100 per cent of costs. Adjusted to project specificities to optimize impact on the underlying instrument’s rating.
- Tenor of coverage: Maximum guarantee tenor of 25 years for investment operations and 20 years for policy-based interventions in countries that receive blended loans.
- Costs: Pricing neutrality applies between guarantees and loans. Details: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=40852576
- Currency: USD
Eligible Countries
-
Argentina -
Bahamas, The -
Barbados -
Belize -
Bolivia -
Brazil -
Chile -
Colombia -
Costa Rica -
Dominican Republic -
Ecuador -
Guatemala -
Guyana -
Haiti -
Honduras -
Jamaica -
Mexico -
Nicaragua -
Panama -
Paraguay -
Peru -
Suriname -
Trinidad & Tobago -
Uruguay -
Venezuela