MIGA Business Hits New High
World Bank Group Agency Reports $3.2 Billion in New Business for Fiscal Year 2014
Washington, DC, July 24, 2014 — The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, announced strong results for the fiscal year ending June 30, 2014. A record high of $3.2 billion in new insurance underpins foreign direct investment that is expected to catalyze a further $2.6 billion in investment, create 7,500 jobs, generate enough power for 26 million people in countries in need of energy, improve infrastructure, and generally support economies in developing countries around the world. New business saw an uptick of 13 percent over the previous year.
Investments that MIGA insured this year span all regions across a broad range of sectors, including power, manufacturing, agribusiness, financial services, telecommunications, and transportation. The Agency broke new ground with the first use of its credit enhancement product for a bond issue (by Hungary’s Exim Bank)—an innovative example of capital markets investing in developing countries.
Addressing developing countries’ energy deficit was a strong focus of MIGA’s business this year. MIGA’s support included coverage of private-equity firm Actis’ investments in three projects that will supply a quarter of Cameroon’s electricity; the Agency’s first project in Lebanon, which will play a large role in transforming the country’s struggling power sector; and Cerro de Hula wind farm in Honduras that will supply cheaper, clean, and renewable energy in one of Latin America’s poorest countries.
MIGA’s partnership with the Overseas Private Investment Corporation (OPIC – the U.S. development finance institution) to mobilize private equity funds that will support over a half a million small farmers in sub-Saharan Africa was also a notable development this year.
“We are privileged to serve private investors operating in developing countries by insuring $3.2 billion in projects that we expect will create 7,500 jobs and generate enough power for 26 million people in countries experiencing energy deficits,” said Keiko Honda, MIGA’s Executive Vice President and CEO. “We seek to better serve private investors and developing countries with our political risk insurance and credit enhancement products.”
She added, “We expect to continue to be innovative in applications of our products—like their use to bolster capital market transactions and private equity.”
During the fiscal year MIGA also launched a new strategy to align with the World Bank Group’s goals of ending extreme poverty and boosting shared prosperity. The Agency will work in tandem with the World Bank and IFC on a country basis to identify high-impact projects and collaborate with national governments to reach their development objectives.
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi, MIGA