Credit Enhancement Platform
Credit Enhancement Products
Balance Sheet & Credit Substitution
Used when a borrower or SPV lacks sufficient standalone credit strength.
Standby Letters of Credit (SBLCs)
Bank guarantees
Corporate guarantees from rated parents
Sovereign or quasi-sovereign guarantees
Insurance-wrapped guarantees
Collateral & Equity Gap Support
Applied when transaction economics are sound but equity or collateral is insufficient.
Equity-substitute SBLCs
Performance and completion guarantees
Sponsor support undertakings
Cost overrun guarantees
Debt service reserve guarantees
Execution, Performance & Trade Risk
Performance & Execution Risk
Used where lenders or offtakers focus on execution capability rather than credit.
Performance guarantees
Advance payment guarantees
Warranty and defect liability guarantees
Offtake performance security
Supply and delivery guarantees
Counterparty & Trade Risk Mitigation
Designed to reduce exposure between buyers, sellers, and intermediaries.
Trade SBLCs and payment guarantees
Receivables and credit insurance
Buyer default guarantees
Trustee-controlled escrow structures
Letter of Credit confirmation
Structuring, Issuance & Closing
Input & Documentation
Transaction documents, financials, collateral data, and enhancement objectives are defined.
Underwriting & Risk Mapping
Credit gaps are identified and matched to issuer and lender requirements.
Provider Matching
Rated banks, insurers, and guarantors are engaged.
Issuance & Closing
Instruments are issued and embedded into the transaction through closing.
Credit Enhancement FAQ
How much does credit enhancement cost?
SBLCs and bank guarantees typically range from 3% to 7% per annum. Performance guarantees range from 2% to 5% upfront. Insurance-wrapped guarantees range from 1.5% to 4% per annum.
Can credit enhancement replace equity?
No. Sponsor equity and risk capital are always required.
What is the minimum transaction size?
Most issuers require transactions above USD 2.5 million.
How long does issuance take?
Typical timelines range from three to eight weeks once documentation is complete.