We work with local and sovereign governments, regulated utilities, and private-sector developers and operators, along with their bankers and advisors, to reduce the medium- and long-term funding cost of essential projects and services in countries with investment-grade sovereign ratings.
In addition to our guarantees, we add value through our credit skills, ability to negotiate documentation appropriate for our guarantees and ongoing surveillance capability. Our guarantees help issuers gain capital market access and achieve broader distribution in both domestic and cross-border markets, while providing investors credit protection and liquidity.
We provide credit enhancement for listed bonds, private placements with sole or a restricted number of institutional investors, and bank loans. We apply our guarantees in both primary and secondary markets and to issues with fixed, floating or inflation-indexed interest rates.
We require that both the transaction's underlying credit quality and the sovereign rating of the country of origin be at least investment-grade, and we apply other criteria appropriate for the transaction's revenue sources, credit characteristics, transaction structure and expected return.(Why should it be investment grade ?)