MIGA First Quarter FY00 Guarantee Results

MIGA First Quarter FY00 Guarantee Results

Washington, D.C., October 25, 1999 — The Multilateral Investment Guarantee Agency (MIGA) issued 11 guarantee (insurance) contracts totaling $374 million for the best first quarter in its history. Five projects are located in the Latin America and Caribbean region, three in Eastern Europe, and two in Africa. In comparison, during the first quarter of FY99, MIGA issued $186 million of coverage.

Mr. Roger Pruneau, Vice President of MIGA Guarantees, noted:

"Our excellent results were due to a combination of heavy demand and a number of changes which have made MIGA more user-friendly to our clients. We are building better linkages to our clients through overseas offices and making better information more accessible through the electronic media. In addition, we are improving efficiency in our internal processes, streamlining procedures in order to increase our productivity."

Three Representative Projects Guaranteed During The First Quarter of FY00 Are:

• Initial Project in Turkmenistan
  MIGA issued US$8 million of coverage to EFES Yatirim Holdings A.S., a Turkish based holding company, for its equity investment to expand and modernize a soft drink bottling facility. This is the first project MIGA has guaranteed in Turkmenistan. The existing facility will be transformed into a state-of-the-art bottling facility. Benefits related to the project include the establishment of an efficient distribution system by Turkmenistan Coca-Cola Bottlers Ltd., transfer of know-how and technology, and creation of 180 new jobs. MIGA will provide coverage against the risks of expropriation and war and civil disturbance. 
• MIGA Guarantees Loan for Commercial Real Estate Expansion in Czech Republic
  MIGA issued US$90 million in coverage to CA-Leasing GmbH for a shareholder loan to Bank Austria Creditanstalt Leasing Real Estate S.R.O. The loan is for expansion of their commercial real estate operations. An estimated $100 million in labor and materials will be purchased within the local market for this project. In addition, training in risk assessment, management, and leasing will be provided for the employees. The MIGA insurance covers against risk of transfer restrictions
• MIGA Insures Loan to Electric Company in Dominican Republic, Assists Tourism Industry
  Banco Hispanoamericano International Puerto Rico, Inc. obtained MIGA coverage for a loan of US$11.1 million to Consorcio Energetico Punta Cana-Macao, S.A. (CEPM). MIGA's guarantee covers the risk of transfer restriction. The loan will be used to expand CEPM's power generating capacity by almost 50%. Since a majority of CEPM's clients are hotels, this expansion will assist in the development of the tourism industry, one of the major sources of employment and foreign exchange revenues in the Dominican Republic.
• St. Kitts and Nevis becomes 150th Member of MIGA
  St. Kitts and Nevis became the newest member of MIGA in September. As of the end of the quarter, MIGA has 150 member countries, including 22 industrialized and 128 developing countries. Lao People's Democratic Republic, Cambodia, and St. Kitts and Nevis ratified this quarter, and Antigua and Barbuda signed the MIGA Convention. A total of sixteen countries are in the process of fulfilling MIGA membership requirements. 
• MIGA Reaches Out to Clients with Introduction of Special Representatives
  To expand representation in the marketplace, MIGA has set up three overseas offices in Switzerland, Japan, and Bosnia, and appointed three special representatives. The offices are intended to bring MIGA closer to prospective clients. The three representatives are:

Contact:
Ms. Louise Davidson,
Tel: (202) 473-5106;
Fax: (202) 522-2630