One of the key tasks of BSTDB is to mobilize foreign and local capital, both public and private, for loans and guarantees in its countries of operation. Co-financing is one of the most effective ways to mobilize such funds, since co-financiers can take full advantage of the Bank’s advisory capacity, its financing and project evaluation activities as well as its in-depth knowledge of the economic strategies of its countries of operation.

BSTDB interacts with a variety of other lenders including multilateral development banks, bilateral financial institutions, export-credit agencies, official lenders or guarantors, commercial banks, and other financial intermediaries. Examples of the different forms of interaction with other lenders include:

•  Joint Co-financing
• Parallel Co-financing
• Participations
• Syndications
• Assignments

 

Co-financing, especially from private sources, often results in borrowers obtaining financing to which they would not normally have access and in negotiating more favorable terms (e.g. lower interest rates or fees or longer maturates) from other lenders.

BSTDB as an international financial institution expects to be considered a preferred creditor. In its lending transactions, BSTDB should normally rank at least equal to other lenders.