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The iTrust will provide customized, program-based guarantees designed to enhance bankability and promote competition with minimal fiscal and financial impact

We are implementing the International Guarantee Trust Fund for Renewable Energy (iTrust) with the purpose of providing customized program-based guarantees to be automatically granted to all renewable energy projects awarded in eligible participating public auctions.

Effectively designed guarantees are a very robust instrument to mitigate actual and perceived risks, resulting in lower weighted average cost of capital; longer debt tenors; and improved project cash flow stability, predictability, and bankability.

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Guarantees lower actual and perceived risks, improving credit ratings and leading to:

  • More lending available
  • Lower interest rates
  • Longer tenors for loans
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Improved economics and competition result in lower prices for renewable electricity

These guarantees cover the most typical "offtaker liquidity" risk and the longer-term risk of offtaker or country default in paying for the obligations arising from the early termination of offtake agreements.

The funds for these guarantees come from different sources gathered by the iTrust, such as the countries supported by the iTrust, philanthropic donors, multilateral development banks, and institutional and private investors.

iTrust Guarantee Scheme
Benefits of Implementing the iTrust
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Enhanced credit rating

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Lower fiscal exposure

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Improved investor attractiveness and competition

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Faster development of renewables at lower cost

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Compliance with Nationally Determined Contributions

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Social and economic development

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Enhanced bankability

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Knowledge and pricing pre-bids - automatic access

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Lower weighted average cost of capital

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Effective coverage upon payment default and/or early termination triggering events

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Offshore structure under private law, with its own assets isolated and independent from the host country’s decisions

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High-impact investment via clean and sustainable projects

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Leverage/multiply the use of funds via private sector crowd-in

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Mitigated/limited risks controlled by country and program eligibility criteria and governments’ active participation and co-funding