The IFC Guaranteed Offshore Liquidity Facility (GOLF) is designed to allow cross-border securitizations to achieve higher credit ratings through mitigation of currency transfer and convertibility (T&C) risk. Unlike traditional political risk insurance (PRI), GOLF is a credit product. This differentiation allows GOLF to be offered at a price which is potentially lower than similar PRI instruments.
The GOLF Facility achieves this risk mitigation through provision by IFC of a guarantee of the asset originator’s obligation to fund an offshore liquidity facility upon the occurrence of a T&C event. This offshore liquidity facility funding obligation would be an amount equal to the interest due on the relevant note classes for the estimated maximum duration of a T&C event. Should the originator fail to fund this facility in full and/or in a timely fashion, IFC would fund the facility on behalf of the originator to ensure that interest payments on the covered note classes continue uninterrupted. Upon disbursement under the guarantee, IFC would then have recourse back to the originator for the amounts paid.
The IFC GOLF is designed for seamless integration into capital markets transactions. The higher ratings achievable through use of the GOLF should provide issuing clients access to a wider investor base and lower all-in cost of funding, while giving investors a way to gain exposure to emerging market asset-backed transactions with lower risk.
Learn more details about IFC's guaranteed offshore liquidity facility. 
