A reputed Turkish EPC contractor, headquartered in the US, had been commissioned to deliver a large project in Afghanistan. It needed to raise payment guarantees to the tune of USD 10 mn, in order to procure critical equipment from its supplier in Austria.

Scrutinising the requirement, Blend Finance quickly worked out that a non-traditional solution was the way to go. Blend’s Guarantee Desk facilitated a financial guarantee bond that itself is so niche that underwriters in the current market shy away from.

The sheer innovativeness of the deal resulted in a higher credit rating of the underlying transaction for the issuer, which in turn attracted funders to support the guarantees.