FerroServ (Pty) Limited

MIGA's first guarantees in South Africa were issued to Multiserv International N.V. (Multiserv) of the Netherlands, totaling $4 million, for its equity investment in a steel slag processing plant. The project enterprise, FerroServ (Pty.), Ltd., a wholly-owned subsidiary of Multiserv, will improve the output of a local, privately-held stainless steel company by recovering metals from the plant's slag output. MIGA also insured Harsco Corporation of the United States for $4.5 million for its guarantee of a $3.5 million loan by the First National Bank of Southern Africa, Ltd., to the project enterprise. Local companies will benefit from the project because most of the construction materials for the crushing and milling plants will be obtained locally, as will most of the equipment and machinery. Both investments are covered against the risks of currency transfer and war and civil disturbance. A private insurer is providing Multiserv with expropriation coverage.