SF-BAU Ploiesti

MIGA issued two guarantees totaling $1.3 million in coverage to SF-BAU of Austria. The guarantees cover SF-BAU's equity investment in and a shareholder loan to SF-BAU Ploiesti for the construction and rental of an office building in Ploiesti, about 60 kilometers from Bucharest. The investments are covered against the risks of transfer restriction and expropriation.

MIGA also issued a $6.6 million guarantee to Erste Bank of Austria for its loan to the project enterprise. The loan is covered against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project will have a positive impact on Ploiesti's economic development. Local building contractors will benefit from the transfer of technology, and the building will provide an attractive work environment for high-tech companies, such as Raytheon Constructors and Engineers, Limited, which will lease it.