Benefits for Infrastructure Issuers

Our guaranty provides significant benefits for issuers of debt to finance essential infrastructure.

Reduced refinancing risk: Guaranteed infrastructure financings have the characteristics to meet demand from pension funds, insurance companies and other institutional investors seeking long-tenor, low-risk investments that are well matched to distant future liabilities.  As a result, it is not necessary to finance 30-year project commitments with shorter term bank loans.

Access to capital markets:  Financial guarantees are generally necessary to issue long-term bonds for a complex project financing.

Reduced cost of funds:  Pricing reflects both the enhanced credit strength of the transaction as well as the additional investor benefits embedded in our guaranty.

More diversified investor base:  Our guaranty expands the potential investor base beyond the limited number of institutions prepared to maintain the specialized capabilities required to invest in complex infrastructure financings.

Single point of contact:  We generally have rights that would otherwise belong to the trustee or a committee of creditors, along with extensive knowledge of the transaction and a commitment to its success.  Without a guarantor as controlling party, trustees may have less flexibility to address requests for waivers or amendments constructively, and achieving consensus among multiple bondholders may be impossible. In contrast, we can identify problems early through our monitoring process and work with issuers before problems become irreversible.

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