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Proparco is facilitating access to financial markets for local institutions in emerging and developing countries
Project
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Signature date
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Location
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Multi-country Global
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Financing tool
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Financing amount (Euro)
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9090909
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Financing details
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USD 10m equity investment
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Customer
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Frontier Clearing Corporation
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Type of customer
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Investment fund
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Country of headquarters
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The Netherlands
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Project number
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PZZ1468
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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.
Proparco is increasing stability and inclusion on interbank markets in emerging and developing countries via a loan of some EUR 9,090,909 (USD 10m) to Frontier Clearing Corporation (“Frontclear”), a company that aims to develop financial markets.
Client presentation
Frontier Clearing Corporation (“Frontclear”) is a company that aims to develop financial markets. Its main objective is to act as a catalyst to increase stability and inclusion on interbank markets in emerging and developing countries.
Project description
Frontclear facilitates access to financial markets for local institutions, at both the local and international levels, by issuing guarantees that cover the residual counterparty credit risk in interbank transactions. Through its technical assistance program, Frontclear also supports the development of skills and the creation of financial infrastructure in developing countries.
Project impact
Frontclear supports the development of the economy by facilitating the creation of more liquid, more stable and more inclusive financial markets in emerging and developing countries:
- Frontclear allows small banks to access regional and international financial markets, which reduces their financing costs and thereby gives them the means to manage their risk.
- This subsequently allows these banks to allocate financing to their SME clients in a more responsible manner.