IFC Syndications has a long-standing business development partnership with the Multilateral Investment Guarantee Agency (MIGA). We can refer lenders and sponsors considering new investments in developing countries to MIGA and facilitate structuring of MIGA’s risk mitigation solutions.
MIGA offers political risk insurance coverage for four types of non-commercial risk: transfer and convertibility; breach of contract; expropriation; and war and civil disturbance.
MIGA also provides a credit enhancement solution through its Non-Honoring of Financial Obligations (NHSO) product, which can cover transactions involving sovereign and sub-sovereign entities, as well as state-owned enterprises. The primary beneficiaries for this coverage are commercial lenders that provide loans to public sector entities for infrastructure and other productive investments.
How It Works
IFC can refer co-investors or sponsors to MIGA when they might benefit from political risk guarantees in developing-country jurisdictions where they are considering new debt or equity investments. IFC participation in the investment is not required.
Benefits of MIGA Guarantees
- Provides protection for non-commercial risks
- Strong risk appetite: Operates in challenging markets (lower-income, conflict-affected and fragile states) and insures at longer tenors (15 years)
- Strong pre-claim management: Manages risks in pre-claims and leverages World Bank Group network
- Highly rated: Recognized as highly rated multilateral institution by the Basel Committee