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Frontclear: A participatory loan to help small banks access markets
Project
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Signature date
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Location
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Multi-country Global, Kenya
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Financing tool
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Financing amount (Euro)
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25531138.87
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Financing details
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USD 28m Participatory loan
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Customer
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Frontier Clearing Corporation
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Type of customer
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Company
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Project number
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PZZ1233
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By facilitating access to financial markets for small banks, Frontclear is allowing them to finance themselves at a lower cost and therefore more effectively control their risks – which ultimately promotes the allocation of loans to their clients.
Client presentation
The Frontier Clearing Corporation is a financial markets development company focused on catalyzing more stable and inclusive interbank markets in emerging and frontier countries.
Project description
Frontclear facilitates access for local institutions to local and global financial markets through the issuance of guarantees covering residual counterparty credit risk in interbank transactions. Through its technical assistance program, Frontclear also supports capacity development and the establishment of financial infrastructure in developing countries.
Project impact
Frontclear enables access to local and global markets for smaller banks, thereby reducing their funding costs and enabling them to manage risk. In turns, this allows the banks to extend more responsible funding to their SME clients. Frontclear support economic development by catalysing the establishment of more liquid, stable and inclusive financial markets in emerging markets and developing countries.