Garantia offers guarantees for corporate loans underwritten by all significant corporate lenders such as banks, insurance companies and leasing companies.
Benefits of employing a guarantee
Garantia’s guarantee mitigates the credit risk incurred by the lender, improving credit availability and terms for the borrower. By engaging a guarantee, the borrower can also optimise the use of its bank facilities, relieving financing capacity to be used for future financing needs.
For lenders, Garantia’s guarantees offer strong credit protection and hence the possibility to share risk, without the corresponding need to share other business revenues. Garantia’s guarantees are suitable for most industries and can be easily tailored to fit the needs of different transaction types.
General financing terms
Garantia usually participates in the financing projects of medium and large companies, where the required guarantee volume is at least EUR 0.5 million. Guarantees can be underwritten to cover loans, credit lines and most other kinds of credit facilities.
Loan tenor and collateral policy
Garantia can guarantee loans up to the maturity of 10 years. The amount of required counter-collateral depends on the creditworthiness of the borrower and the characteristics of the financed project.
Guarantee pricing
The guarantee premium pricing depends on the creditworthiness of the borrower, the amount of collateral available, and the tenor of the guaranteed loan.
Guarantee underwriting
Garantia’s underwriting requires the successful completion of a credit analysis on the borrower. The analysis is focused on the ownership structure, corporate governance, business model, financial structure and sustainability (ESG) aspects of the borrower. Garantia’s underwriting policy has a preference for projects where debt can be expected to be repaid by operating cash flows produced in ordinary business operations. The amount of equity involved is also an important factor.
Further aspects
As Garantia is an insurance company rated by a public ratings agency (S&P: A-), Garantia’s guarantees are an applicable credit risk mitigation technique for credit institution beneficiaries, allowing reduced risk weights for the guaranteed loans under the Standard Approach of the Basel II/III capital rules.