The European Commission and TCX have established a guarantee program called the “EU Market Creation Facility – Pricing Component Plus” (referred to as EFSD+ Pricing Facility) to reflect the strong strategic willingness of the Commission and TCX to increase the accessibility and affordability of local currency in development finance.
The Commission, through EFSD+, is providing EUR 150 million guarantee, which will allow TCX to provide pricing discount on hedging solutions for a total notional amount estimated up to EUR 2 billion over the next two years. The Program will facilitate local currency transactions that would otherwise not be possible without a discount across four regions: Asia Pacific, European Neighborhood East and South, and Sub-Saharan Africa.
The Program prioritizes the European Union’s initiatives, such as Global Gateway and Team Europe projects in order to close the global investment gap and contribute to the Sustainable Development Goals. The Facility is supported by the implementing partner, EDFI MC.
The Program is currently open for submissions from all international financial institutions and impact investors. Investors that wish to benefit from the Facility but are not yet active TCX counterparties are encouraged contact the TCX team.
Key documents:
TCX EFSD+ Information Memorandum
TCX EFSD+ Side Letter Template
TCX EFSD+ Submission Form
To receive the password for the documents, and for more information, please send an email to [email protected].