The TCX EU Market Creation Facility – Pricing Component Plus (TCX PC+) was established to reflect the strong strategic willingness between the European Commission (“EC”) and the Currency Exchange Fund (‘TCX’) to cooperate to increase the use of local currency in development finance by reducing the cost of hedging local currency risks for final beneficiaries by offering currency swaps and forwards at a discount.
As an EU Pillar Assessed entity, EDFI Management Company acts as the facilitator of the programme by signing a TCX PC+ Guarantee Agreement with the EC. The EC provides, through EDFI PC+, an irrevocable, unconditional, on demand guarantee to EDFI MC up to a maximum amount of € 150,000,000. EDFI MC passes the guarantee to TCX to guarantee a minimum annual return on its portfolio of eligible foreign exchange swaps.
This Programme builds on the existing EFSD Guarantee (KfW EU Market Creation Facility – Pricing Component) entered into between KfW and the EC.
The aim of the programme is to support investments that contribute to the Sustainable Development Goals, EFSD+ key policy objectives and Global Gateway initiatives. This Programme will encourage counterparties of TCX to provide financing (or refinancing) indexed to local currency to eligible borrowers at favourable terms to unlock greater local currency financing across emerging and frontier markets.
More information: TCX Fund
Total EFSD+ Guarantee support
€ 150 million
Geographical focus:
Sub- Saharan Africa, Asia, Pacific, the Middle East, the European Neighbourhood East and the European Neighbourhood South
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