GuarantCo provides guarantee to Trade and Development Bank for sustainable infrastructure projects
By Global Infrastructure Sherpa · Sep 23, 2025
GuarantCo provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia, enabling TDB to access a sustainability loan from the Tokyo branch of Korea Development Bank for green and social projects including renewable energy.
Deal Analysis
GuarantCo's provision of a USD 41.5 million guarantee to the Trade and Development Bank (TDB) in Mongolia is a significant development in facilitating sustainable infrastructure financing. The 100% payment default guarantee enables TDB to secure a sustainability loan from Korea Development Bank (KDB) for green and social projects, including renewable energy initiatives. This structure leverages GuarantCo's credit enhancement capabilities to unlock international capital for projects aligned with environmental and social goals in Mongolia.
The deal is notable for its cross-border collaboration, involving a Mongolian borrower (TDB), a South Korean lender (KDB), and a guarantor with an international mandate (GuarantCo). The five-year tenor of the guarantee provides a medium-term horizon for the supported projects. By mitigating credit risk, GuarantCo's guarantee encourages further investment in Mongolia's sustainable infrastructure sector, potentially catalyzing additional projects and fostering economic growth.
- GuarantCo provides a 100% payment default guarantee of USD 41.5 million.
- The guarantee enables Trade and Development Bank (TDB) to access a sustainability loan from Korea Development Bank (KDB).
- Financing is earmarked for green and social projects, including renewable energy.
- The deal involves cross-border collaboration between Mongolian, South Korean, and international entities.
Market Context: Mongolia is actively seeking to diversify its economy and reduce its reliance on fossil fuels. The renewable energy sector presents a significant opportunity for growth, but access to international financing can be challenging due to perceived risks. This deal demonstrates a mechanism for overcoming these challenges through credit enhancement.
Source Intelligence
KEY DETAILS
The guarantee is for a five-year term. Quote: GuarantCo has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia.
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Deal Size
GuarantCo has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia.
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Location
GuarantCo has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia.
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Announcement
23 September 2025
PARTIES MENTIONED IN SOURCE
G
GuarantCo
guarantor
"GuarantCo has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia."
T
Trade and Development Bank JSC (TDB)
recipient
"GuarantCo has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia."
K
Korea Development Bank
lender
"This innovative guarantee solution enables TDB to access a sustainability loan from the Tokyo branch of Korea Development Bank."
P
Private Infrastructure Development Group (PIDG)
part of GuarantCo
"GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a five-year 100% payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia."
high quality
Enriched Feb 19, 2026
Market Context
This deal is part of the Renewable Energy sector in Mongolia.
1 of 94 Renewable Energy deals tracked this month · Updated daily
Global Infrastructure Sherpa