GuarantCo is a subsidiary of the Private Infrastructure Development Group (PIDG). PIDG is an innovative infrastructure development and finance organization funded by six governments. PIDG also supports affiliate entities such as Dhamana in East Africa and InfraZamin in Pakistan, whose products can also be found on this Directory.

Commercial banks are often limited to a maximum tenor for the loans they provide which means viable infrastructure projects may be abandoned for lack of long term financing. The Liquidity Extension Guarantee aims to overcome this tenor obstacle by enabling the debt to be structured over a longer tenor e.g. 14 years, with the option to call the guarantee at the end of the bank's maximum tenor, eg. 7 years. At the end of each year, the bank has the option to push the transfer date forward for another year, or to run down the tenor towards the transfer date at which point the loan would be transferred to GuarantCo.