Private Guarantees

With a Guarantee, applicants may obtain funds/commercial financing on terms and conditions that are advantageous, and which may give the client greater "equity" in a project. This means the project carries "less risk" for funders/investors, thus giving the funder "more comfort" to invest in the project. This support may gain extensions of maturity and lower interest spreads.

A Guarantee supported project effectively attracts long-term commercial financing in sectors such as power, water, transport, telecom, oil and gas, mining, or any other commercially viable project.

Applying for a Guarantee

We require a Summary of the transaction and intended use of the Financial Instrument together with confirmation as to the legality of its application.

If accepted the procedures require the opening of an Account and provision of all materials pertinent to the applicant and the proposed transaction plus verifiable information as to the Principals.

An Application Fee of US$10,000 is payable on lodgement regardless of the Financial Instruments size. There are a number of procedures which need to be met before the Instrument is provided. 

"Corporate & Bank guarantees were provided to customers in the past upon request. However due to the recent escalation of  fraudulent transactions in Financial and Capital markets (particularly involving guarantees), a policy has been implemented, in that Private Guarantees will only be issued to (genuine customers, with proven, and legitimate projects.)"

Advantages and benefits of Guarantees

• May assist private financing in infrastructure/commercial projects
• Funder/investors are attracted to "Guaranteed" projects, because of reduced risk
• Can support privatizations and public private partnerships
• Encourages co-financing with other funder/investors
• Opens new markets for expanding corporations
• Can lower the cost of financing
• May improve a  project sustainability