Frontclear, an Amsterdam, the Netherlands-based financial markets development company, received USD$30m in funding.
The Dutch bilateral development bank FMO provided the amount.
The company intends to use the funds to begin scaling operations and deliver on projected growth path of its financial guarantee portfolio.
Led by Philip Buyskes, CEO, Frontclear focuses on catalyzing stable and inclusive interbank markets in emerging and developing countries (EMDC). It facilitates access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution’s counterparty credit risk. This on the condition that local currency assets can be used for collateral management purposes.
The company is funded by European governments and development finance institutions including BMZ, DFID, FSDA, EBRD, Proparco and TCX.
Frontclear’s Basel III compliant guarantees specifically cover due payment of the Early Termination Amount under ISDA contracts and corresponding claims under GMRA. The guarantees are in turn counter-guaranteed by KfW, an AAA-development financial institution. The guarantees are complemented by a technical assistance programme (FTAP), which supports targeted and planned interventions in bank and system development, reducing the operational and country risks obstructing interbank trading.
FinSMEs
13/02/2017