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Republic of Ecuador / NEXI to Provide Overseas Investment Insurance for Supporting Investment in Frozen Vegetables Manufacturer/Supplier


August 2, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Investment Insurance for the investment from Air Water Inc. to Ecofroz S. A., a manufacturer and supplier of frozen vegetables in the Republic of Ecuador (Ecuador).

With the insurance, NEXI will cover the political risk related to Air Water’s acquisition of shares in Ecofroz. This is the first Overseas Investment Insurance for NEXI to offer for investment into Ecuador after it became a stock company.

Taking advantage of its rich agricultural land in Ecuador, at an altitude of 2,800 meters, Ecofroz’s business operations are deployed seamlessly, through the production of year-round culture of high quality broccoli, freezing process and sales. The company’s products are exported primarily to Japan, North America and Europe. Air Water, who has business dealings with Ecofroz over more than 20 years through its group companies is planning to further reinforce its value chain leveraging group synergies by this investment.

In the recent fruit and vegetable market in Japan, there is an increased demand for frozen vegetables that can be prepared quickly and easily in a short time through omitting labor of cooking, due to a shortage of labor in the food service industry. While frozen vegetable imports has also been in a growing trend, the insurance provided by NEXI will also contribute to secure a stable supply of frozen foods.

The importance of enhancing the support for ‘food infrastructure exports’ and of promoting initiatives to create a food value chain making good use of such exports have been indicated in the revised strategy for promoting infrastructure exports, published in 2019 by the Japanese government. Providing this overseas investment insurance is therefore in line with the government’s policy.

As a governmental financial institution of Japan, NEXI will continue to actively support the overseas expansion of Japanese companies.


Reference:
Insured Air Water Inc.
Tenor 3 years
Covered Risks Political Risk 100%

Contract: Overseas Investment Insurance Underwriting Group, Underwriting Department
Tel: +81-(0)3-3512-7668

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