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Illustration UNLOCK
UNLOCK is Proparco’s innovative guarantee scheme offered to financial institutions to jointly cover the risk on long-term financing in local currency for key development projects.
Key aspects of UNLOCK

 

Generating impact through a long-term partnership

 

Proparco:

  • Issues guarantee
  • Extends the tenor of the local currency financing
  • Brings on board regional and international expertise
  • Enhances creditworthiness with its AA rating (S&P’s)

Local commercial bank:

  • Provides project financing
  • Ensures liquidity throughout the life of the loan
  • Brings on board local market know-how

Eligible projects:

  • Financing needs of 20-50 M USD (or equivalent)
  • Multisector development project: infrastructure, energy, agriculture, manufacturing and services
How does it work?

Proparco issues a guarantee in favour of the local bank, to then on-lend to the project company. The structure is based on strong coordination between partners, with Proparco acting as co-lead arranger of the financing.

How Unlock works
Proparco provides increased risk coverage over time

 

What type of guarantee?

UNLOCK is a suretyship guarantee that can be called upon after collection efforts have been exhausted and acceleration has been invoked.

Type of guarantee

 

panneaux solaires

Unlocking Solar Capital in Namibia

Despite having one of the best solar resources in the world, Namibia imports more than 60% of its electricity needs.

Proparco provided a guarantee to a local bank - Standard Bank - to finance the construction of Namibia's first solar power plant. Amounting to nearly 8% of the total installed capacity in the country, this power plant will allow Namibia to reduce its energy dependence and expand local access to clean and affordable energy.

Impact:

  • 112 GWh per year of clean energy to the national grid, enough to meet the annual electricity needs of over 70 000 Namibians.
  • Local economy and stakeholder engagement
  • Innovative on-the-ground funding solution with potential for replication in regional and new markets.

“Proparco and Standard Bank jointly designed an integrated offer which enabled the project company to secure long-term financing in local currency.”

Juan Laso, Executive President – Alten Energías Renovables