Guarantco Management Company Limited

GuarantCo Management Company Limited(“GMC”or the“Company”)is a company registered in England and Wales and provides management advisory and support services to GuarantCo Limited (GuarantCo), a company registered in Mauritius. GuarantCo was established to help address and overcome existing constraints in the supply of local financing to infrastructure projects in poor countries and to help the development of local financial markets in the same countries. GuarantCo is part of the Private Infrastructure Development Group (PIDG) which is a trust funded by the governments of the UK, the Netherlands, Switzerland, Australia, Sweden, Germany and the International Finance Corporation (IFC). The Company has an exclusive long term contract with GuarantCo which includes the provision of the following services: a. Identification of guarantee opportunities that comply with GuarantCo’s Investment Policy; b. proposing guarantee opportunities to the New Business and Credit Committee; c. performing due diligence investigations on guarantee opportunities; d. negotiation of documentation, and ongoing monitoring and management of transactions; e. administrative services for GuarantCo which includes cash management and reporting; and f. claim payment. Whilst substantially all of GuarantCo's management, administration and reporting were contracted to the Company, the Private Infrastructure Development Group Limited "PIDG Limited" also provide treasury and liquidity advice and support with managing some of GuarantCo's risks including Health and Safety and Environmental and Social risks. In addition to this representatives of PIDG Limited also sit on the GMC Credit Committee, GMC Portfolio Committee and GMC Risk and Finance Committee.Review of businessThe Company reported a net profit after taxes for the period of £1,322,026 (2021: £401,384). The result and financial position at the period end were considered satisfactory by the Directors and are in line with their expectations. The financial position for the year is shown on page 14. The revenue for the year is earned from GuarantCo and is a function of the costs in the same period: all costs incurred by the Company are recovered at cost with the exception of the performance fee which is dependent on GuarantCo achieving its financial and development targets agreed by the Board of GuarantCo. The budgeted operating costs for the Company (which excluded staff bonuses) totalled £9,629,630 (2021: £9,018,022). The Company’s actual costs for the period under review are set out on page 13. Underspend against the budget was returned back to GuarantCo, minus efficiency rebate of £109,645 The Company met most of its performance targets set by the Board of GuarantCo and was paid a Performance fee of £5,591,277 – being 90.5% of the maximum fee payable.The Directors do not anticipate any change in the nature of the Company’s principal activity going forward.