Guarantees & Securitisation
We guarantee large and small projects to make them more attractive to other investors. We provide guarantees for senior and subordinated debt, either in a standard form or as a debt service guarantee similar to that offered by monoline insurers. Beneficiaries can be large private and public projects or partner intermediaries providing SME financing.
Advantages of a guarantee
Depending on the underlying funding structure of the operation, a guarantee may be more attractive than one of our loans. It may either provide greater value-added or require lower capital charges. Under capital adequacy rules our guarantees provide a zero risk weighting to the guaranteed obligation.
The Loan Guarantee Instrument for Trans-European Network Transport (LGTT) is designed to guarantee medium term revenue risks from public-private partnership transport schemes. Risk sharing instruments are also used in the SME funding schemes JEREMIE and CIP schemes, as well as complementing the Risk Sharing Finance Facility (RSFF) which boosts research, development and innovation.
Guarantees for SMEs: http://www.eif.org/what_we_do/guarantees/index.htm