Frontclear is a financial markets development company focused on catalyzing stable and inclusive interbank markets in emerging and frontier markets. Frontclear facilitates access to financial markets for local institutions to local and global markets through the provision of credit guarantees to cover their counterparty credit risk. Frontclear provides Basel III compliant first demand irrevocable guarantees. Our guarantees are in turn counter-guaranteed by KfW, a AAA-rated financial institution.
Frontclear’s ability to issue guarantees is based on the funding the Frontier Clearing Funds commit to by their subscription for Subordinated Notes, Junior Notes or Senior Notes. The Frontier Clearing Funds are able to do so on the basis of the funding committed by our Investors.
In addition to the provision of guarantees to enable bilateral over-the-counter transactions, Frontclear provides risk capital to Financial Infrastructure Providers in emerging and frontier markets. Through our technical assistance program, Frontclear supports capacity development and the establishment of financial infrastructure in our countries of operations.