1. Loan Guarantee Specifications:
| SL.No | Specification | Definition | Minimum | Maximum | Frequency | Other Key Notes/ Relavant Features |
|---|---|---|---|---|---|---|
| 1 | Guarantee Periods | Tenor of time in which a guarantee shall be eligible to a guaranteed party | 12 months | 15 years | N/A | N/A | 2 | Currency of Guarantee Payments | Guarantees should preferably be issued in local currency, but can be issued in hard currency if deemed appropriate. | N/A | N/A | N/A | Likely Local Currency Options: MMK, XOF, UGX, TZS, NPR, LAK, VND
| 3 | Origination Fee | Represents administrative fee to cover the costs of setting up and managing the guarantee | Trransaction-specific; could be as low as 0.5% of total Guarantee Ceiling | Transaction Specific | Could be paid upon disbursement; but due and payable no later than thirty (30) days after the Signature Date of the Loan Guarantee Agreement | N/A |
| 4 | Commitment Fee | Fee charged on the unutilized portion of a funded guarantee to account for opportunity costs or loss of interest costs for a guarantee | Transaction-specific; could be as low as 0.5% of unutilized portion of total Guarantee Ceiling | Transaction Specific | Could be paid on disbursement; but due and payable quarterly, semi annually or annually | Calculated based on the average daily untilized portion of the the Guarantee Ceiling during the payment period | 5 | Utilization Fee | Risk-reflective fee that is based on the amount of the guarantee actually used byt the guaranteed party | Transaction-specific; could be as low as 0.5% of unutilized portion of total Guarantee Ceiling | Transaction Specific | Due and payable quarterly, semi-annually or annually | Shall normally be payable in advance of each interest payment period under the underlying loan instrument, based on a percentage of the outstanding debt.
| 6 | Guarantee Ceiling | Maximum liability to the Guarantor under the guarantee agreement | USD 100,000 Equivalent | USD 5,000,000 Equivalent | N/A | May need ability to toggle between basket of currencies |
| 7 | Guarantee Expiration Date | Date in which the Guarantee Coverage shall expire | Last day of Guarantee Period | 90 days after last Day of Guarantee Period | The Guarantee shall cover defaults up until and including (at most) 90 days from the final installment payment date on the Loan Agreement. | |
| 8 | Guarantee Reserve Allocation | Set aside funds which will cover losses sustained by Guaranteed Party, who submits a valid claim | Utilization and Commitment Fee Payments | 100% of all fees (Origination, Commitment and Utilization Fees) + Guarantee Amount | In line with Fee payment schedules||