FRONTIER CLEARING CORPORATION B.V.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Frontclear is an Amsterdam based company and is part of the Cardano Development Group. Frontclear is funded by a number of European development finance institutions, including the European Bank for Reconstruction and Development (EBRD), Proparco, The Currency Exchange Fund (TCX), the UK Department of International Development (DFID, through the Financial Sector Deepening Africa) and German Federal Ministry for Economic Cooperation and Development (BMZ). Frontclear’s guarantees are counter-guaranteed by KfW, a AAA-rated German development Bank.
What is our funding objective?
Frontclear is a financial markets development company focused on catalyzing more stable and inclusive financial markets in emerging and developing countries. Frontclear facilitates more competitive access to interbank markets though issuance of Basel III compliant credit guarantees to cover a transacting institution’s (the Obligor) counterparty credit risk. Frontclear covers money market instruments including but not limited to repo’s, cross currency repo’s and derivative instruments.
Why do we fund this investment?
The investment represents a significant increase in the capital of Frontclear and allows Frontclear to extend its efforts to support the development of more inclusive and more liquid interbank markets in emerging and frontier economies. Frontclear is a niche-player with a unique proposition. Given the company’s start-up nature, FMO is highly additional. Further value is added by enabling Frontlcear to access FMO’s network and knowledge such as FMO’s worldwide financial institution sector knowledge and client base. Frontclear’s product offering is complementary to FMO since it is highly beneficial to many of our financial institutions clients: whereas DFIs provide long-term financing, Frontclear offers short – term money market solutions. Finally, Dutch interest is clearly represented in this transaction.
More investments
| Date | Total FMO financing |
|---|---|
| 12/12/2022 | USD 50.00 MLN |
| 12/2/2019 | USD 30.00 MLN |
- Country
- Global
- Sector
- Financial Institutions
- Effective date
- 2/13/2017
- End date
- 12/20/2019
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C