GuarantCo provides guarantee to Trade and Development Bank for sustainable infrastructure projects

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.