Tokyo, Japan, September 17, 2020 — IFC, a member of the World Bank Group, and Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan, have signed an agreement to jointly advance private-sector-led development in poor and fragile countries.
“As COVID-19 jeopardizes decades of hard-won development gains, we are making it a priority to help investors return to developing countries,” said Philippe Le Houérou, the Chief Executive Officer of IFC, at the signing ceremony. “This collaboration with NEXI will help finance new projects and boost recovery efforts in these countries.”
This first Memorandum of Understanding between the parties will enable them to explore opportunities—through a range of financial instruments—to jointly support economic and social development in common regions of operation. IFC’s expertise in financing and NEXI's mission to promote exports and overseas business for Japanese companies will complement each other in this regard.
Activities under the new framework may include project co-financing, joint work to identify and prepare candidate projects for possible collaboration, and information-sharing in relation to appropriate risk allocation and management among host governments and other parties.
“This MOU will enable NEXI and IFC to contribute to the economic growth of developing countries around the world, including Asia, Africa, and Latin America, by supporting large-scale and sustainable infrastructure, power, and natural resource projects in which Japanese companies participate through exports, equity investments, and debt financing,” said NEXI Chairman and Chief Executive Officer Atsuo Kuroda.
IFC works closely with the Government of Japan and Japanese governmental financial institutions to provide financing and advice to support private sector investments in developing countries. It follows the signing of similar agreements between IFC and the Japan International Cooperation Agency in May 2017, and IFC and the Japan Bank for International Cooperation in June 2020.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries . In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
About NEXI
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 https://www.nexi.go.jp/en/ .
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