Guarantees

The IDB offers guarantees to enhance financing of sovereign and non-sovereign borrowers with or without sovereign counter-guarantees. IDB guarantees improve financial terms in project financing and capital market instruments and help promote investment in Latin America and the Caribbean.

General aspects of guarantees:

• Types of guarantees: partial credit guarantees or political risk guarantees.
• Uses of guarantees: enhancement of bond issues, project finance, asset-backed securities, securities backed by future flows, structured trade transactions.
• Amounts: calibrated to optimize impact on the underlying instrument’s rating.
• Tenor: up to 30 years.
• Fees: Facility fee charged for guarantees with sovereign counter-guarantee; for non-sovereign guarantee operations fees are determined on a case-by-case basis.

About Local Currency (LC) Guarantees

• LC denominated guarantees: offered subject to market availability.
• Fees: charged in LC, reflecting IDB’s fee structure for guarantees applicable at the time of approval.
• Called guarantees: become a loan in the currency of denominated; same terms and conditions of LC loans apply. Please refer to LC Financing.