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International Bank for Reconstruction and Development (World Bank Group)

Partial Credit Guarantees

Instrument description

The International Bank for Reconstruction and Development (IBRD) offers Partial Risk Guarantees (PRGs) as a risk mitigation instrument. PRGs can cover risks that cause performance failures of a government or government-owned entity with respect to contractual obligations for a private project. A wide range of risks can be covered, including:

  • Currency inconvertibility/non-transferability
  • Political force majeure risks: expropriation, war and civil disturbance, material adverse government action
  • Regulatory risks, change of law and regulations, negation/cancellation of license and approval
  • Frustration of arbitration
  • Payment defaults and performance failures of a government/ public counterparty

PRGs are available to private lenders or investors that use commercial debt instruments to provide funding for such projects.

Eligible projects and transactions

Projects with private participation dependent on government undertakings, such as build–operate–transfer and concession projects, public-private partnership projects and privatizations. The projects can be both greenfield or brownfield.

Eligible regions

Available for all countries eligible for IBRD loans, which include 69 middle- and high-income countries. The complete list can be found here:

https://policies.worldbank.org/sites/ppf3/PPFAnnex/993431d6-2d14-406e-a923-69984923e494Annex2.pdf

Key features

  • Size of coverage: PRGs typically cover outstanding principal and accrued interest of a debt tranche in full.
  • Tenor of coverage: Extended maturities necessary to make the project financially viable.
  • Costs:
    • Front-end fee: one-time fee of 0.25 per cent on the amount of the guarantee.
    • Initiation fee: one-time fee of 0.15 per cent on the amount of the guarantee or a minimum of USD 100,000.
    • Processing fee: one-time fee of up to 0.5 per cent on the amount of the guarantee, to cover the cost of out-of-pocket expenses.
    • Guarantee fee: 0.3 per cent per annum on the disbursed and outstanding guarantee amount.
  • Currencies: PRGs can cover foreign currency and local currency debt.

Eligible Countries

  • Flag of Afghanistan
    Afghanistan
  • Flag of Albania
    Albania
  • Flag of Algeria
    Algeria
  • Flag of Angola
    Angola
  • Flag of Antigua & Barbuda
    Antigua & Barbuda
  • Flag of Argentina
    Argentina
  • Flag of Armenia
    Armenia
  • Flag of Azerbaijan
    Azerbaijan
  • Flag of Bangladesh
    Bangladesh
  • Flag of Belarus
    Belarus
  • Flag of Belize
    Belize
  • Flag of Benin
    Benin
  • Flag of Bhutan
    Bhutan
  • Flag of Bolivia
    Bolivia
  • Flag of Bosnia & Herzegovina
    Bosnia & Herzegovina
  • Flag of Botswana
    Botswana
  • Flag of Brazil
    Brazil
  • Flag of Bulgaria
    Bulgaria
  • Flag of Burkina Faso
    Burkina Faso
  • Flag of Burundi
    Burundi
  • Flag of Cambodia
    Cambodia
  • Flag of Cameroon
    Cameroon
  • Flag of Cape Verde
    Cape Verde
  • Flag of Central African Rep.
    Central African Rep.
  • Flag of Chad
    Chad
  • Flag of Chile
    Chile
  • Flag of China
    China
  • Flag of Colombia
    Colombia
  • Flag of Comoros
    Comoros
  • Flag of Congo, Dem. Rep.
    Congo, Dem. Rep.
  • Flag of Congo, Repub. of the
    Congo, Repub. of the
  • Flag of Costa Rica
    Costa Rica
  • Flag of Cote d
    Cote d'Ivoire
  • Flag of Croatia
    Croatia
  • Flag of Djibouti
    Djibouti
  • Flag of Dominica
    Dominica
  • Flag of Dominican Republic
    Dominican Republic
  • Flag of Ecuador
    Ecuador
  • Flag of Egypt
    Egypt
  • Flag of El Salvador
    El Salvador
  • Flag of Equatorial Guinea
    Equatorial Guinea
  • Flag of Eritrea
    Eritrea
  • Flag of Ethiopia
    Ethiopia
  • Flag of Fiji
    Fiji
  • Flag of Gabon
    Gabon
  • Flag of Gambia, The
    Gambia, The
  • Flag of Georgia
    Georgia
  • Flag of Ghana
    Ghana
  • Flag of Grenada
    Grenada
  • Flag of Guatemala
    Guatemala
  • Flag of Guinea
    Guinea
  • Flag of Guinea-Bissau
    Guinea-Bissau
  • Flag of Guyana
    Guyana
  • Flag of Haiti
    Haiti
  • Flag of Honduras
    Honduras
  • Flag of India
    India
  • Flag of Indonesia
    Indonesia
  • Flag of Iran
    Iran
  • Flag of Iraq
    Iraq
  • Flag of Jamaica
    Jamaica
  • Flag of Jordan
    Jordan
  • Flag of Kazakhstan
    Kazakhstan
  • Flag of Kenya
    Kenya
  • Flag of Kiribati
    Kiribati
  • Flag of Kosovo
    Kosovo
  • Flag of Kyrgyzstan
    Kyrgyzstan
  • Flag of Laos
    Laos
  • Flag of Lebanon
    Lebanon
  • Flag of Lesotho
    Lesotho
  • Flag of Liberia
    Liberia
  • Flag of Libya
    Libya
  • Flag of Macedonia
    Macedonia
  • Flag of Madagascar
    Madagascar
  • Flag of Malawi
    Malawi
  • Flag of Malaysia
    Malaysia
  • Flag of Maldives
    Maldives
  • Flag of Mali
    Mali
  • Flag of Marshall Islands
    Marshall Islands
  • Flag of Mauritania
    Mauritania
  • Flag of Mauritius
    Mauritius
  • Flag of Mexico
    Mexico
  • Flag of Micronesia, Fed. St.
    Micronesia, Fed. St.
  • Flag of Moldova
    Moldova
  • Flag of Mongolia
    Mongolia
  • Flag of Montenegro
    Montenegro
  • Flag of Morocco
    Morocco
  • Flag of Mozambique
    Mozambique
  • Flag of Myanmar
    Myanmar
  • Flag of Namibia
    Namibia
  • Flag of Nauru
    Nauru
  • Flag of Nepal
    Nepal
  • Flag of Nicaragua
    Nicaragua
  • Flag of Niger
    Niger
  • Flag of Nigeria
    Nigeria
  • Flag of Pakistan
    Pakistan
  • Flag of Palau
    Palau
  • Flag of Panama
    Panama
  • Flag of Papua New Guinea
    Papua New Guinea
  • Flag of Paraguay
    Paraguay
  • Flag of Peru
    Peru
  • Flag of Philippines
    Philippines
  • Flag of Poland
    Poland
  • Flag of Romania
    Romania
  • Flag of Russia
    Russia
  • Flag of Rwanda
    Rwanda
  • Flag of Saint Kitts & Nevis
    Saint Kitts & Nevis
  • Flag of Saint Lucia
    Saint Lucia
  • Flag of Saint Vincent and the Grenadines
    Saint Vincent and the Grenadines
  • Flag of Samoa
    Samoa
  • Flag of Sao Tome & Principe
    Sao Tome & Principe
  • Flag of Senegal
    Senegal
  • Flag of Serbia
    Serbia
  • Flag of Seychelles
    Seychelles
  • Flag of Sierra Leone
    Sierra Leone
  • Flag of Solomon Islands
    Solomon Islands
  • Flag of Somalia
    Somalia
  • Flag of South Africa
    South Africa
  • Flag of South Sudan
    South Sudan
  • Flag of Sri Lanka
    Sri Lanka
  • Flag of Sudan
    Sudan
  • Flag of Suriname
    Suriname
  • Flag of Swaziland
    Swaziland
  • Flag of Syria
    Syria
  • Flag of Tajikistan
    Tajikistan
  • Flag of Tanzania
    Tanzania
  • Flag of Thailand
    Thailand
  • Flag of Timor Leste
    Timor Leste
  • Flag of Togo
    Togo
  • Flag of Tonga
    Tonga
  • Flag of Trinidad & Tobago
    Trinidad & Tobago
  • Flag of Tunisia
    Tunisia
  • Flag of Turkey
    Turkey
  • Flag of Turkmenistan
    Turkmenistan
  • Flag of Tuvalu
    Tuvalu
  • Flag of Uganda
    Uganda
  • Flag of Ukraine
    Ukraine
  • Flag of Uruguay
    Uruguay
  • Flag of Uzbekistan
    Uzbekistan
  • Flag of Vanuatu
    Vanuatu
  • Flag of Venezuela
    Venezuela
  • Flag of Vietnam
    Vietnam
  • Flag of Yemen
    Yemen
  • Flag of Zambia
    Zambia
  • Flag of Zimbabwe
    Zimbabwe