Washington DC, November 23, 2020 — MIGA, a member of the World Bank Group, and Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan, have signed a Cooperative Agreement to strengthen collaboration in support of foreign direct investment from Japanese investors in developing countries by providing coinsurance and reinsurance for projects in which MIGA or NEXI provide investment guarantees, insurance or other forms of investment.
Building on a 2018 MOU between MIGA and NEXI on reinsurance cooperation, this new agreement leverages the expertise of each organization to collaborate throughout the various stages of project development, including marketing, due diligence, and underwriting for coinsurance and reinsurance opportunities. Strengthened collaboration between MIGA and NEXI will reduce the risk exposure that either institution would bear individually and facilitate investments that would otherwise be deemed too insecure to undertake.
“This agreement enables MIGA and NEXI to draw on each other’s strengths and extend our collective reach,” said MIGA Executive Vice President Hiroshi Matano. “Together, MIGA and NEXI will contribute to drawing in FDI to developing countries by helping Japanese investors finance high quality projects, especially in low-income countries and fragile and conflict-affected situations.”
MIGA will continue to work with the Government of Japan and Japanese government-owned financial entities to provide political risk management solutions to support investment by Japanese companies and financial institutions in developing countries and emerging markets. MIGA's support for Japanese firms represents the fourth highest among investor countries, with MIGA currently providing over $2.3 billion in guarantees for investments made by Japanese firms across the globe.
“By sharing knowledge and experiences that NEXI and MIGA have accumulated so far, I hope we continue to mutually cooperate to financially support emerging and developing countries that have become more important for Japanese companies,” said NEXI Chairman and Chief Executive Officer Atsuo Kuroda.
NEXI—the export credit agency of Japan, wholly owned by the Government of Japan—was established on April 1, 2017, under the Trade and Investment Insurance Act, which came into effect on March 31, 1950 by official proclamation. NEXI conducts insurance business, providing coverage for risks associated with international transactions of Japanese companies, which are not covered by private insurers. For more information, visit its website at nexi.go.jp/en
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $59 billion in guarantees across 118 developing countries.
In April 2020, MIGA launched a $6.5 billion fast-track facility to support private sector investors and lenders tackling the COVID-19 pandemic in low- and middle-income countries. The Facility redirects MIGA’s capacity toward the purchase of urgent medical equipment, provides working capital for small and medium enterprises, corporates and individuals, and supports short-term funding needs of governments. The Facility, which allows for issuance of guarantees using streamlined and expedited procedures, aims to meet coronavirus-related challenges through several mechanisms, including credit enhancement, de-risking solutions and supporting trade finance.
The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. It is supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs.
The World Bank Group is making available up to $160 billion over a 15-month period ending June 2021 to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans and $12 billion for developing countries to finance the purchase and distribution of COVID-19 vaccines.
In Washington: Vamsee Krishna Kanchi, (202) 458-9771, email@example.com
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