| Product Name |
Policy-Based Guarantee
Link to Product Website |
| Provider Name |
AfDB (African Development Bank)
|
| Product Definition |
Policy Based Finance. A special example of a Partial Credit Guarantee is the Policy Based Guarantee (PBG), which can be structured to cover the full risks of portions of sovereign borrowings from private creditors. These guarantees can help improve sovereign’s access to capital markets to raise financing in support of agreed structural, institutional and social policy reforms. Given that PBGs are considered as an alternative or supplement to adjustment loans, eligible client countries should have demonstrated a strong track record of performance. |
| Product Type |
Partial Credit Guarantee
|
| Defined Risks Covered |
Comprehensive Risk
|
| Eligible Form of Investments |
Bonds
Bank Loans
Non-Bank Loans
Shareholder Loans
|
| Eligible Currency of Underlying Investment Covered by this Product
| Both local and foreign currency
|
| Eligible Countries & Regions |
| Algeria |
Angola |
Benin |
| Botswana |
Burkina Faso |
Burundi |
| Cameroon |
Cape Verde |
Central African Republic |
| Chad |
Comoros |
Congo, Democratic Republic of |
| Congo, Republic of |
Djibouti |
Egypt |
| Equatorial Guinea |
Eritrea |
Ethiopia |
| Gabon |
Gambia |
Ghana |
| Guinea |
Guinea Bissau |
Ivory Coast |
| Kenya |
Lesotho |
Liberia |
| Madagascar |
Malawi |
Mali |
| Mauritania |
Mauritius |
Morocco |
| Mozambique |
Namibia |
Niger |
| Nigeria |
Rwanda |
Sao Tome and Principe |
| Senegal |
Seychelles |
Sierra Leone |
| Somalia |
South Africa |
Sudan |
| Swaziland |
Tanzania |
Togo |
| Tunisia |
Uganda |
Zambia |
| Zimbabwe |
|
| Eligible Applicants |
All
|
| Eligible Sector |
n.a. |
| Maximum Tenor |
15+ to 20 years
|
| Max. Absolute Amount (USD) |
0 to 50 MM
|
| Max. % of Project Costs Covered |
25+% to 50%
|
| Max. % of Export Content Covered |
Max./under 50%
|
| Fees |
Market-based
n.a.
|
| Other Conditions |
Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Others:
|
| Source(s) |
n.a. |
| For more information, contact |
Director, Private Sector Services Department, AfDB (African Development Bank)
Email: private-sector@afdb.org
Phone: 216 71 850 270
|
| Attachments |
Financial Products Brochure - June 2005.PDF
Bank Policy on Guarantees.PDF
|
| Additional Links |
n.a.
|
| Deals |
n.a. |
|
| Provider Name |
AfDB (African Development Bank)
|
| Institution Type |
PUBLIC: Multilateral Development Bank
|
| Ownership |
77 member countries |
| Head Office |
African Development Bank Angle des trois rues: Avenue du Ghana, Rue Pierre de Coubertin, Rue Hedi Nouira
BP. 323 1002
Tunis Belvedère |
| Provider Home Country |
Tunisia |
| Rating |
Aaa/AAA/AAA |
| Main Risk Mitigation Products |
Partial Credit Guarantee (AfDB)
Policy-Based Guarantee (AfDB)
Sub-sovereign Finance (AfDB) |
| Attachments |
n.a.
|
| Additional Links |
|
| Entered On: |
11/02/2007 at 03:44 PM |
| Updated On: |
06/04/2009 at 02:18 PM |
