How do the terms and conditions of financing raised with the Banks guarantee compare with what the borrowers can do on their own?
With the Bank’s guarantee, it should be possible for a borrower to mobilize funds on terms and conditions significantly better than it could do on its own-including extensions of maturity and lower interest spreads. The borrower can also select-depending on the acceptability in the particular market-the currency, interest rate basis (fixed or floating) and maturity to best match the project’s requirements.
