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Japanese credit insurance agency Nippon Export and Investment Insurance (NEXI) has signed a risk-sharing agreement with Multilateral Investment Guarantee Agency (MIGA), a political risk insurer attached to the World Bank.
The agreement will have the two organisations work together in sharing risk through reinsurance packages on investments made by Japanese companies in emerging markets, reports Global Trade Review.
MIGA and NEXI will purchase reinsurance policies from each other, which will result in lower exposure compared to each agency acting on its own. This will allow the duo to support projects that may be too risky or challenging individually.
”MIGA’s strategy for the next few years focuses on mobilising private capital to three priority areas: clean energy, fragile and conflict-affected situations, and low-income countries,” MIGA executive vice president and CEO Keiko Honda was quoted as saying. “This agreement with NEXI helps us work more closely with Japanese firms, and to turn our strategy into results.”
“Through the memorandum of understanding, MIGA and NEXI are expected to use their own strengths to help Japanese companies develop effective investment projects,” added NEXI chairman Kazuhiko Bando. “I definitely believe that the collaboration will make a further positive contribution to many countries.”
Recently, NEXI has provided export credit insurance on an 8.5-year deferred payment term to Superkrane of Indonesia, which will purchase construction machinery from JA Mitsui Leasing of Japan.
