Traditionally used by governments or public entities, PCG are also being more recently used by sub-sovereign governments, municipalities and private companies to borrow domestically from commercial banks or issue in the domestic capital market in local currency. A Partial Credit Guarantee can lift the borrower’s credit rating above a critical threshold, at which access to the market is possible. The guaranteed coverage level is set to achieve a target bond rating to facilitate bond issuance, or at a level required to encourage commercial bank lenders to participate.