TCX enables international lenders to offer financing in the currencies their borrowers earn.
We provide currency hedging in emerging and frontier markets, focusing on currencies and tenors where commercial solutions are limited or unavailable.
Much of international development finance is raised in hard currency. When a borrower earns in local currency but owes in US dollars or euros, movements in the exchange rate can change the cost of that debt independently of the underlying performance of the project or business.
Over longer tenors, this mismatch can weaken balance sheets, reduce fiscal space and place otherwise viable investments under pressure.
Through an FX forward or cross currency interest rate swap, the exchange rate risk is transferred to TCX and managed across a globally diversified portfolio.
Where market appetite exists, TCX may transfer part of the currency risk to private investors.
Beyond hedging individual transactions, TCX helps develop deeper and more accessible local currency markets. By facilitating frontier currency-linked bond issuance and increasing market transparency, we help connect international investors with emerging and frontier markets.
TCX’s role evolves with the market: absorbing and pricing risk where commercial solutions are absent, connecting that risk with private investors as appetite develops, and focusing on the remaining gaps as markets deepen.
