> ## Content Index > Fetch the complete content index at: https://blog.financely.io/llms.txt > Use this file to discover other available public pages before exploring further. # Why Project Finance Needs More Credit Enhancement - URL: https://blog.financely.io/why-project-finance-needs-more-credit-enhancement/ - Published: 2026-09-02T12:26:31.000Z - Updated: 2026-09-02T12:26:31.000Z - Description: Why letters of credit, bank guarantees, completion support and political risk cover are becoming more important in project finance and infrastructure debt. - Author: Financely Debt Advisors - Tags: Mining Project Finance Project Finance | Guarantees | Structured Credit # Why Project Finance Is Becoming More Dependent on Credit Enhancement **More infrastructure projects are reaching the capital market with risks that senior lenders are unwilling to hold entirely on an uncovered basis.** The result is greater use of bank guarantees, letters of credit, completion support, political risk insurance, partial credit guarantees, payment guarantees and other forms of credit enhancement to isolate specific risks inside the capital structure. This is particularly visible across renewable energy, transmission, transport, digital infrastructure, water, mining and emerging-market public-private partnerships, where long construction periods, weak offtakers, sovereign exposure and large capital requirements can prevent an otherwise viable project from reaching financial close. [Request a Credit Enhancement Quote](https://www.financely-group.com/requestaquote?ref=blog.financely.io) ### Table of Contents 1. [Guarantee Volumes Are Increasing](#evidence) 2. [Why Projects Need More Risk Support](#why) 3. [Project Finance Is Risk Allocation](#riskallocation) 4. [Construction and Completion Support](#construction) 5. [Letters of Credit in Project Finance](#lc) 6. [Bank Guarantees](#bg) 7. [Offtaker and Sovereign Payment Risk](#offtaker) 8. [MDB and DFI Guarantees](#multilateral) 9. [Political Risk Insurance](#political) 10. [Bank Capital and Concentration Limits](#bankcapital) 11. [Credit Enhancement Cannot Replace Equity](#not-equity) 12. [How Financely Structures Credit Enhancement](#structuring) 13. [Frequently Asked Questions](#faq) ## Guarantee Volumes Are Increasing The institutional project-finance market is already moving in this direction. The World Bank Group created a centralized Guarantee Platform to bring together guarantee products previously issued through different parts of the organization. In its first fiscal year, the platform issued **USD 12.3 billion of guarantees across 77 projects in 40 countries and one regional development bank**, representing a 19% increase over the previous year. MIGA alone issued a record USD 9.5 billion of guarantees across 44 projects during fiscal 2025\. Those transactions were expected to mobilize approximately USD 9.8 billion of private capital. The institution is now scaling further. In May 2026, the World Bank Group announced plans to more than double annual guarantee issuance in Africa to **USD 6.4 billion by 2030**. The wider World Bank Group has set a target of deploying USD 20 billion of guarantees annually by 2030. This is more than an increase in political risk insurance. Guarantees are increasingly being used as a deliberate capital-mobilization tool. **The financing problem has changed.** Many projects have credible assets and identifiable cash flows but contain one or two risks that prevent commercial lenders from offering the required tenor, leverage or pricing. Credit enhancement allows those risks to be separated and allocated to institutions better able to hold them. ## Why the Demand for Credit Enhancement Is Growing Project finance has always depended on risk allocation. What is changing is the size and complexity of the projects seeking private capital. Renewable generation increasingly comes with battery storage, new transmission infrastructure and grid-upgrade obligations. Data centers require large power commitments, interconnection deposits and equipment procurement. Mining projects require extensive infrastructure before first production. Transport and water projects often depend on concession agreements or public-sector availability payments. Emerging-market independent power producers can carry long-dated exposure to state-owned utilities. Meanwhile, commercial banks still have internal country limits, single-obligor limits, sector limits and capital constraints. A lender may like the project economics while remaining unwilling to carry fifteen years of uncovered exposure to the project's offtaker, host government or construction package. This creates demand for structures that move a defined part of the risk away from the senior lender. ![Transmission infrastructure under construction](https://images.unsplash.com/photo-1717445580207-9ab967908eda?auto=format&fit=crop&fm=jpg&ixlib=rb-4.1.0&q=80&w=1800) Transmission and other large infrastructure projects can require completion support, performance security and contingent liquidity before senior lenders accept long-tenor project exposure. ## Project Finance Is Ultimately a Risk Allocation Exercise A project-finance lender underwrites a special-purpose vehicle whose principal source of repayment is the project itself. That creates a simple problem during construction: the project has consumed substantial capital while producing little or no operating cash flow. The lender therefore asks which party carries each risk until the asset reaches completion. Construction risk can sit with the EPC contractor through fixed-price obligations, performance security and liquidated damages. Cost-overrun exposure can sit with the sponsor through contingent equity. Equipment-delivery risk can be supported through advance payment guarantees. Public-sector payment obligations can be supported through letters of credit, sovereign guarantees or multilateral payment guarantees. Political risk can be transferred to an insurer or development institution. The credit structure improves when risks are allocated to parties capable of absorbing them. ## Construction Risk Creates Some of the Greatest Demand for Guarantees The construction period is one of the weakest points in a limited-recourse financing. Senior lenders may have funded substantial amounts before the project has completed commissioning, satisfied performance tests or generated the revenue assumed in the financial model. The World Bank's PPP guidance specifically identifies sponsor support during construction as a common feature of project finance. Structures can include shortfall guarantees, contingent equity commitments, subordinated debt commitments and other forms of support designed to protect lenders until construction or specified operating tests have been achieved. A [completion guarantee](https://www.financely-group.com/completion-guarantees-de-risking-construction-for-faster-debt-close?ref=blog.financely.io) can therefore address one of the most important gaps in a greenfield financing. The relevant obligation needs to be defined precisely. A completion guarantee can cover cost overruns, debt service before completion, failure to satisfy completion tests or other agreed exposures. Lenders will examine the guarantor's own creditworthiness because a guarantee from a thinly capitalized sponsor provides limited additional protection. ## Performance Security Sits Alongside Completion Support The EPC contractor usually supports its own obligations separately. A project can require a performance bank guarantee covering failure to perform under the EPC contract. An advance payment guarantee can protect mobilization or procurement advances made before equipment or construction work has been delivered. A bid bond may support obligations during tendering. These instruments shift defined contractor exposure toward the issuing bank, subject to the wording and conditions of the guarantee. The project company and its lenders therefore receive a creditworthy claim that can be more valuable than relying exclusively on an unsecured claim against the contractor. ## Letters of Credit Are Becoming Part of the Project Finance Architecture Letters of credit can perform several functions inside a project financing. A sponsor may provide a standby letter of credit in place of cash required for a reserve account. A bank can issue an LC supporting construction obligations. An offtaker can provide an LC as liquidity support for payment obligations under a PPA. Equipment procurement can use documentary letters of credit. A project company can use bank-issued credit support for concession, lease, interconnection or decommissioning obligations. The important point is that the letter of credit should respond to a specific contractual exposure. Financely structures and places these facilities through its [letter of credit structuring and bank placement](https://www.financely-group.com/letter-of-credit-structuring-bank-placement?ref=blog.financely.io) practice. ## A Payment LC Can Protect the Project From Offtaker Delay Consider a solar independent power producer selling electricity to a state-owned utility. The project may have a twenty-year PPA and satisfactory operating economics. The lender's problem is that the utility could pay invoices late. A revolving letter of credit covering several months of PPA payments can provide immediate liquidity if the utility misses a scheduled payment. The project continues servicing debt while the contractual dispute or government payment process is addressed. The World Bank Group uses this exact architecture in its project-based payment guarantee product. A commercial bank LC provides liquidity when a government or public entity delays payment, while a World Bank guarantee backstops the LC bank after the agreed waiting period. This structure shows how an ordinary banking instrument can sit inside a much larger sovereign credit-enhancement package. ## Bank Guarantees Can Replace Cash With Bank Credit Bank guarantees are valuable in project finance because they can satisfy contractual security requirements without permanently trapping equivalent amounts of project cash. The World Bank's project-finance guidance explicitly identifies bank guarantees, letters of credit and performance guarantees as important project-finance instruments because counterparties can obtain immediate payment protection without the project necessarily locking up the same amount in cash. From the issuing bank's perspective, the guarantee remains a contingent credit exposure. The project company, sponsor or contractor provides a counter-indemnity, and the bank underwrites the customer's reimbursement capacity and collateral. Financely handles these requirements through its [bank guarantee structuring and placement](https://www.financely-group.com/bank-guarantee-structuring-placement?ref=blog.financely.io) service. ## Guarantees Can Support Several Layers of One Project | Project Exposure | Potential Credit Enhancement | Principal Beneficiary | | --------------------------------- | ------------------------------------------------ | ---------------------------------- | | EPC performance | Performance bank guarantee | Project company | | Advance paid to contractor | Advance payment guarantee | Project company | | Construction completion | Sponsor completion guarantee / contingent equity | Senior lenders | | PPA payment delay | Revolving payment letter of credit | Project company / lenders | | Government contractual obligation | MDB payment or partial risk guarantee | Project lenders / investors | | Debt-service reserve | Eligible standby letter of credit | Senior lenders | | Political intervention | Political risk insurance | Lender or equity investor | | Equipment procurement | Documentary letter of credit | Supplier | | Decommissioning obligation | Bank guarantee or standby letter of credit | Government / regulator / landowner | ## Offtaker Risk Is Driving More Structured Support Long-term project debt depends heavily on the reliability of project revenue. An independent power producer may have excellent technology, conservative generation assumptions and a strong EPC contract. Senior debt can still be difficult to place if the offtaker is a weak utility or public-sector entity. The problem is particularly important in emerging markets where utilities can face tariffs below cost, accumulated receivables, foreign-exchange pressure or dependence on government transfers. Credit enhancement can separate that risk from the underlying asset. Structures can include sovereign guarantees, letters of credit, escrow accounts, liquidity facilities, partial risk guarantees and political risk insurance. The correct instrument depends on whether the lender is concerned about temporary payment delay, long-term default, convertibility, breach of contract or another sovereign event. Financely's [credit enhancement advisory for emerging-market infrastructure](https://www.financely-group.com/credit-enhancement-for-infrastructure-deals-in-emerging-markets?ref=blog.financely.io) addresses these situations at the capital-structure level. ## MDB and DFI Guarantees Are Moving Into the Mainstream The scale of World Bank guarantee activity demonstrates how central these structures are becoming to private-capital mobilization. The World Bank Group says project and policy guarantees can improve financing terms, extend maturities and mobilize larger amounts of private capital than direct public lending alone. In April 2026, MIGA announced a guarantee framework supporting up to 23 renewable energy and battery storage projects developed by AMEA Power across Africa, the Middle East and Central Asia. The framework provides up to **USD 1.48 billion of guarantees supporting approximately USD 1.65 billion of equity, quasi-equity and shareholder-loan investment**. The significance lies in the portfolio structure. Instead of arranging entirely separate guarantee processes for every project, the framework creates an architecture that can be reused across multiple countries and technologies. This is how credit enhancement begins to scale as financial infrastructure rather than remaining a bespoke rescue tool for weak projects. ![Utility scale solar power project](https://images.unsplash.com/photo-1780922576207-7eb4b93a4b9e?auto=format&fit=crop&fm=jpg&ixlib=rb-4.1.0&q=80&w=1800) Renewable portfolios increasingly combine senior project debt, sponsor equity, multilateral guarantees, political risk cover and contractual credit support. ## Political Risk Insurance Addresses a Different Problem A bank guarantee from a commercial bank and political risk insurance from a multilateral institution solve different risks. Political risk cover can protect investors and lenders against events such as expropriation, currency inconvertibility, transfer restriction, war, civil disturbance and breach of contract by public entities, depending on the policy. MIGA's AMEA Power framework, for example, can cover war and civil disturbance, expropriation, transfer restriction, currency inconvertibility and breach of contract for qualifying investments. A project can therefore have strong sponsors, a sound EPC contract and good operating economics while still requiring political-risk protection because the capital is being deployed for fifteen or twenty years in a jurisdiction where lenders want protection against government action. That form of enhancement can increase available tenor and reduce the risk premium required by commercial capital. ## Credit Enhancement Can Also Solve a Bank Balance-Sheet Problem Sometimes the project itself is bankable but the lender has insufficient risk capacity. Banks operate under internal country limits, sector limits and counterparty limits. Regulatory capital also influences how much exposure they can hold against certain borrowers and jurisdictions. A guarantee can change the credit exposure recognized by the lender, depending on the structure and applicable regulatory treatment. This can allow a bank to offer a larger facility, longer tenor or more competitive pricing while keeping its net uncovered exposure within acceptable limits. MIGA has increasingly used capital optimization guarantees for precisely this purpose. A 2025 guarantee package for BBVA totaling USD 1.75 billion was designed to free risk capacity and support additional lending in Argentina, Peru and Türkiye. Credit enhancement therefore belongs in lender strategy as well as project strategy. ## Letters of Credit Consume Bank Capacity Too Project sponsors sometimes treat an LC as if it were administrative paperwork. It is a bank credit product. An issuing bank assumes a contingent obligation. If a complying draw occurs, the bank pays and then seeks reimbursement from its customer. The bank therefore assesses the applicant's balance sheet, liquidity, collateral, requested amount, tenor, beneficiary, wording and transaction. A project SPV with no operating history can face significant collateral requirements unless the sponsor supports the facility or another credit-enhancement structure reduces the issuing bank's risk. This is why an LC requirement should be incorporated into the financing plan early rather than addressed days before financial close. ## Collateral Requirements Can Create a Second Financing Need A project may obtain a bank willing to issue a USD 20 million standby letter of credit while requiring USD 20 million of cash margin. The instrument solves the beneficiary's security requirement but creates a liquidity problem for the sponsor. The capital stack may therefore need margin financing, a guarantor, eligible securities, sponsor support or another form of collateral accepted by the issuing bank. Financely's [credit enhancement advisory](https://www.financely-group.com/credit-enhancement-advisory?ref=blog.financely.io) can address the instrument and the collateral structure together rather than sourcing an LC in isolation. ## Credit Enhancement Cannot Repair an Under-Capitalized Project This distinction is essential. A USD 100 million greenfield project requiring USD 25 million of sponsor equity cannot simply replace that equity with an SBLC and call the structure non-recourse. Senior lenders need real capital beneath their loan. Completion guarantees, letters of credit and bank guarantees work best when they address specific contingent exposures inside an otherwise viable capital structure. Examples include a six-month offtaker payment reserve, an EPC performance obligation, a defined construction cost overrun, a political risk, a debt-service reserve or a government termination payment. Using a guarantee to cover a clearly identified risk can improve bankability. Using a guarantee to disguise missing project equity usually creates another financing problem. ## Non-Recourse Financing Can Still Include Guarantees Project sponsors sometimes assume that any sponsor guarantee invalidates the concept of non-recourse project finance. That is too simplistic. Greenfield project finance commonly uses limited recourse during construction. Sponsor support may remain in place until mechanical completion, COD, performance testing or another agreed milestone. Once those risks have fallen away, the support can terminate and lenders rely primarily on project cash flow and security. The important question is which risk remains with the sponsor, for how long and for what maximum amount. A properly drafted completion guarantee can therefore be consistent with a limited-recourse financing architecture. ## Credit Enhancement Can Change Debt Pricing and Tenor A lender prices expected loss, capital usage, liquidity and return requirements. If an acceptable guarantor removes a material portion of the lender's expected-loss exposure, the required credit spread can fall. A guarantee may also allow the lender to extend maturity where it would otherwise cap tenor because of sovereign or counterparty risk. The World Bank explicitly identifies longer maturities and lower financing cost among the benefits its guarantee products can create. This means the economic benefit of credit enhancement should be measured against the total financing package. A guarantee charging 150 basis points can still create value if it reduces senior debt pricing by more than that amount, increases leverage, extends tenor or enables the financing to close at all. ## Guarantees Need to Be Sized Against the Actual Exposure A common structuring mistake is asking for a guarantee equal to the entire project debt when the lender is concerned about only one identifiable slice of risk. Suppose the lender is comfortable with the project once construction has finished but wants protection against a USD 15 million cost-overrun scenario. A USD 15 million contingent equity or completion support facility may solve the issue more efficiently than attempting to guarantee a USD 150 million senior loan. Similarly, a utility payment problem might require six months of PPA revenue rather than credit enhancement equal to twenty years of contracted payments. Good structuring isolates the risk before pricing the instrument. ## How Financely Structures Project Finance Credit Enhancement Financely works on [project finance mandates combining debt, equity and credit enhancement](https://www.financely-group.com/project-finance-services-debt-equity-credit-enhancement?ref=blog.financely.io). The process starts with the financing gap rather than with a predetermined banking instrument. ### Map the Credit Constraint We identify the exact issue preventing lenders or investors from committing capital: construction completion, sponsor strength, offtaker credit, political risk, collateral, reserve funding, supplier requirements or another defined exposure. ### Determine the Appropriate Support The solution may involve a Standby Letter of Credit, bank guarantee, payment LC, completion guarantee, contingent equity facility, political risk cover, partial credit guarantee or a combination of instruments. ### Size the Exposure We determine the amount, tenor, trigger mechanics and required beneficiary protection. Oversizing guarantees can create unnecessary collateral and pricing costs. ### Assess Issuer and Guarantor Acceptability The beneficiary's eligibility criteria matter. We assess required bank ratings, jurisdictions, confirming-bank requirements, MDB or DFI eligibility and lender acceptance. ### Structure Collateral and Reimbursement Where a commercial bank requires margin or other collateral, the mandate can include collateral financing, sponsor support or another acceptable reimbursement structure. ### Integrate the Instrument With the Senior Debt The guarantee has to fit the credit agreement, intercreditor arrangements, project documents, cash waterfall and conditions precedent rather than operate as a disconnected instrument. ### Run Targeted Placement Financely approaches banks, private credit providers, guarantors, DFIs, ECAs and other relevant institutions whose mandate fits the specific risk and jurisdiction. ## Financely Can Work Across the Full Credit Support Package A single infrastructure financing can require several separate forms of support. For example, a renewable project could require an EPC performance guarantee from the contractor's bank, an advance payment guarantee for module procurement, a sponsor completion guarantee, a six-month payment LC from the state utility, political risk insurance for lenders and a Standby Letter of Credit supporting the DSRA. Approaching each instrument independently can create incompatible terms. Our role is to structure the package around the senior financing so the instruments work together and the lender understands exactly which residual risks remain. Mandates can include [credit enhancement advisory](https://www.financely-group.com/credit-enhancement-advisory?ref=blog.financely.io), [bank guarantee structuring](https://www.financely-group.com/bank-guarantee-structuring-placement?ref=blog.financely.io), [letter of credit placement](https://www.financely-group.com/letter-of-credit-structuring-bank-placement?ref=blog.financely.io), completion support and the underlying senior project debt. ## Projects We Typically Review The approach is relevant across utility-scale solar, wind, BESS, transmission, conventional energy, water, transport, mining, industrial projects, data centers and other infrastructure where the project's risk allocation supports limited-recourse debt. For emerging-market mandates, particular attention goes to offtaker quality, sovereign exposure, currency, convertibility, concession rights, termination compensation, political risk, local banking capacity and access to multilateral or export-credit support. For developed-market projects, the principal issue may instead be construction completion, interconnection security, equipment procurement, merchant revenue or sponsor liquidity. ## What We Need to Review a Credit Enhancement Mandate A useful initial package should identify the project, financing requirement and the risk that the proposed instrument is intended to cover. - Total project cost and requested senior debt - Equity committed and funded to date - Project jurisdiction - Current development and construction stage - Requested guarantee or letter of credit amount - Required tenor - Beneficiary and beneficiary-bank requirements - Draft guarantee or LC wording where available - EPC and major supply contracts - PPA, concession or offtake agreement - Existing lender term sheets - Sponsor financial information - Available collateral or reimbursement support - Target financial close date Where the sponsor has only been told that a lender “needs credit enhancement,” we can first determine what form of enhancement would actually address the lender's underwriting concern. **The best credit enhancement structures are narrow. They identify the risk preventing the financing from closing and transfer that risk to an institution capable of holding it.** ## Frequently Asked Questions About Project Finance Credit Enhancement ### What is credit enhancement in project finance? Credit enhancement is additional support used to reduce a specific risk faced by lenders or investors. It can include guarantees, letters of credit, political risk insurance, reserve facilities, contingent equity, completion support and multilateral or export-credit guarantees. ### Why are guarantees used in project finance? Guarantees allow a stronger party to assume a defined risk that senior lenders would otherwise have to hold themselves. Examples include construction completion, contractor performance, government payment obligations, political risks and cost overruns. ### How are letters of credit used in project finance? Letters of credit can support PPA payment obligations, debt-service reserves, construction obligations, equipment procurement, concession requirements, interconnection deposits and other contingent payments. The exact structure depends on the underlying contractual obligation. ### Can a letter of credit replace the debt service reserve account? Sometimes. Senior lenders may permit an eligible Standby Letter of Credit from an acceptable bank to satisfy all or part of the DSRA requirement. The credit agreement will specify issuer eligibility, amount, tenor, renewal mechanics and replacement requirements if the issuing bank is downgraded. ### Can a bank guarantee replace sponsor equity? Generally, a bank guarantee should support a defined contingent exposure rather than substitute for the core sponsor capitalization required by lenders. A project still needs a credible equity layer beneath senior debt. ### Can project finance be non-recourse if the sponsor provides a completion guarantee? Yes. Many project financings use limited sponsor recourse during construction. The guarantee can terminate after specified completion tests, COD or another agreed milestone, after which lenders rely primarily on project cash flows and security. ### What is a completion guarantee? A completion guarantee is sponsor or third-party support covering specified construction-phase obligations until the project satisfies agreed completion conditions. Its scope may include cost overruns, debt service, performance tests and required funding to reach completion. ### What is the difference between a bank guarantee and a Standby Letter of Credit? Both can provide independent bank-issued credit support. The choice depends on banking convention, jurisdiction, beneficiary requirements, wording and governing rules. Standby Letters of Credit are frequently subject to ISP98, while demand guarantees commonly use URDG 758. ### What is a partial risk guarantee? A partial risk guarantee protects lenders against specified government or political risks rather than general commercial project underperformance. Covered risks can include government breach of contract, regulatory action, transfer restriction or other agreed sovereign events. ### What is a partial credit guarantee? A partial credit guarantee covers an agreed portion of debt service or principal regardless of the underlying cause of default, subject to the guarantee documentation. It can improve a project's credit profile and help attract commercial lenders or longer-tenor capital. ### Can MIGA or the World Bank guarantee a project? Eligible projects can seek guarantee products through the World Bank Group Guarantee Platform. Products include political risk guarantees, project-based loan guarantees and payment guarantees. Eligibility, development impact, environmental and social requirements, host-country considerations and project structure all influence approval. ### Can a World Bank payment guarantee work with a commercial bank LC? Yes. The World Bank Group expressly provides structures in which a commercial bank letter of credit supplies liquidity following delayed government payments, with the World Bank guarantee supporting the LC bank after an agreed period. ### What collateral does a bank require for a project finance LC or guarantee? Requirements depend on the applicant's credit profile. A strong sponsor may obtain issuance under an existing committed facility. An SPV can face cash margin, parent support, pledged deposits, securities, guarantees or other collateral acceptable to the issuing bank. ### Can Financely arrange credit enhancement together with project debt? Yes. Financely can structure the credit enhancement as part of the wider project-finance mandate, including senior debt, project equity, completion support, letters of credit, bank guarantees and other risk-mitigation instruments where appropriate. ### Does Financely provide the guarantee itself? Financely acts as a structured-finance adviser and arranger. Guarantees, letters of credit and similar instruments are issued by the relevant regulated banks, insurers, guarantors, DFIs, ECAs or other approved institutions following their own underwriting and credit approval. ## Structure the Credit Support Required to Reach Financial Close Financely advises sponsors and project companies on credit enhancement, completion support, Standby Letters of Credit, bank guarantees, payment LCs and other structured support required by senior lenders, investors, EPC counterparties and offtakers. We can structure the enhancement independently or integrate it into a wider project finance mandate covering debt, equity and closing execution. [Request a Credit Enhancement Quote](https://www.financely-group.com/requestaquote?ref=blog.financely.io) ### Selected Institutional Sources [World Bank Group Annual Report — Guarantee Platform and MIGA ](https://www.worldbank.org/en/about/annual-report/miga?ref=blog.financely.io) [World Bank Group — Guarantee Issuance in Africa ](https://www.miga.org/press-release/world-bank-group-double-guarantees-africa-catalyze-investment-create-jobs?ref=blog.financely.io) [MIGA — AMEA Power Portfolio Guarantee Framework ](https://www.miga.org/press-release/portfolio-guarantees-pushes-migas-total-issuance-over-100-billion?ref=blog.financely.io) [World Bank Group — Project-Based Payment Guarantees ](https://www.miga.org/product/project-based-payment-guarantee-private-sector?ref=blog.financely.io) [World Bank PPP Resource Center — Sponsor Support, Bank Guarantees and Letters of Credit ](https://ppp.worldbank.org/intercreditor-arrangements?ref=blog.financely.io) [World Bank PPP Resource Center — Credit Enhancement and Guarantees ](https://ppp.worldbank.org/guarantees?ref=blog.financely.io)