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Guarantees & Credit Enhancement

Risk-sharing instruments that unlock Gulf capital and improve terms

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Matching project risk to instruments from sovereign, multilateral, Islamic, and export credit providers

Coordinating guarantors whose mandates and documentation standards differ

We structure guarantee and credit enhancement solutions that make projects bankable — working with sovereign guarantors, regional development institutions, export credit agencies, and Islamic finance providers.

In the region, the guarantee often decides the financing. Sovereign capacity, the Islamic Development Bank and regional institutions, and export credit agencies covering equipment from Europe and Asia each carry different eligibility rules and documentation standards, and a project usually needs more than one.

Sovereign and institutional guarantees, export credit cover, and credit enhancement that make Gulf and cross-border projects bankable.

Guarantees & Credit Enhancement

Risk-sharing instruments that unlock capital and improve terms

Guarantee waterfall allocation

How risk is distributed between sponsors, guarantors, DFIs, and commercial capital providers.

Risk allocation

Sponsor

First-loss equity

Guarantor

Partial credit guarantee

DFI

Concessional tranche

Commercial

Senior debt / bonds

Cumulative allocation of exposure — the four tranches together cover 100% of structured risk.

Services & capabilities

What we deliver

Discuss this advisory pillar with our Dubai team.

Capability detail

Sovereign guarantees

Advisory on sovereign guarantee mechanisms across GCC states — eligibility, capacity, and the policy process behind them.

30%+

Cost reduction

Typical improvement in financing terms with guarantees

10yr+

Tenor extension

Beyond commercial market limits with credit enhancement

How we've helped

Credit enhancement

Guarantee package for a regional power and water project

We structured a risk-sharing facility combining sovereign support with development finance and export credit cover — extending tenor and reducing the weighted cost of capital enough for the project to clear its investment committee.

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Our approach

A disciplined approach to capital advisory

We match project risk to the instruments actually available to it — sovereign, multilateral, Islamic, and export credit — then negotiate the documentation so the cover holds when it is tested.

Eligibility

Map project risk to available sovereign, DFI, ECA, and multilateral guarantee programs and document additionality.

Design

Structure risk-sharing layers — first-loss, pari passu, partial cover — integrated into the overall financing stack.

Negotiate

Manage term sheets and legal documentation with guarantors and senior lenders to avoid covenant conflicts.

Close & report

Support financial close conditions and ongoing reporting to guarantors through the life of the instrument.

Client outcomes

  • Projects that reach financial close with improved terms and longer tenor
  • Risk allocated clearly between sponsors, lenders, guarantors, and offtakers
  • Guarantee structures documented to the standards each provider requires
  • Lower cost of capital through credit enhancement placed where it counts

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Discuss your mandate

Discuss this advisory pillar with our Dubai team.