Multilateral Investment Guarantee Agency (World Bank Group)

The Multilateral Investment Guarantee Agency (MIGA) provides a Political Risk Insurance instrument to protect investors and lenders of eligible projects and transactions against losses caused by political risks such as currency inconvertibility, transfer restriction, expropriation, war, terrorism, civil disturbance, breach of contract and non-honouring of financial obligations.

New investments as well as investments associated with the expansion, modernization, improvement or enhancement of existing projects and privatization of state-owned enterprises. MIGA also insures cross-border investments.

MIGA can cover equity investments, shareholder loans, shareholder loan guaranties, technical assistance and management contracts, asset securitizations, capital market bond issues, leasing, services, franchising and licensing agreements.

MIGA insures investments into a developing member country made by investors located in any MIGA member country. Almost every nation is a member of MIGA (181 countries).

• Size of coverage:
  • For equity investments: guarantee up to 90 per cent of the investment.
  • For loans and loan guaranties, coverage of up to 95 per cent of the principal plus up to an additional 150 per cent of the principal to cover interest that accrues over the term of the loan.
  • For technical assistance contracts and other contractual agreements, MIGA can insure up to 90 per cent of the total value of payments due under the insured agreement.
  • MIGA can currently issue up to USD 250 million of coverage on its own account for a single project and can cover significantly higher amounts through reinsurance arrangements.
  • There is no minimum investment amount.
• Tenor of coverage: 15 to 20 years
• Costs: Premium rates are decided on a per-project basis and vary by country, sector, transaction and the type of risk insured.

https://www.miga.org/investment-guarantees/overview