Sida's guarantee instrument is an AAA-rated, unfunded sovereign guarantee, backed by the Kingdom of Sweden. It is a risk-sharing instrument with the purpose of mobilizing private capital that can contribute to the overall objective of helping people living in poverty and oppression improve their living conditions. The guarantee instrument is primarily designed to cover credit risk and shall be for the benefit of beneficiaries in ODA-eligible countries. Guarantees can be structured in various ways depending on the underlying need of risk-sharing, including providing guarantees at the portfolio, project, and fund level. The recipient of the guarantee must be a registered legal entity duly incorporated and validly existing under the laws of its jurisdiction of incorporation. Examples of former guaranteed parties include: commercial banks, multilateral development banks and structured funds.