NEXI Signs Cooperation Agreement with MIGA(Re-posted)

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has concluded a Cooperation Agreement with the Multilateral Investment Guarantee Agency (MIGA; Executive Vice President: Hiroshi Matano), and a signing ceremony was held online. In line with this conclusion of the new agreement, NEXI Chairman and CEO Kuroda sent a video message to MIGA. To watch the video, please visit the following URL on the MIGA website:

https://www.miga.org/press-release/miga-and-nexi-facilitate-japanese-investment-developing-countries

MIGA is an international institution that promotes foreign direct investment (FDI) into developing countries by providing guarantees to protect investors and lenders against losses caused by political or non-commercial risks. NEXI and MIGA have established a cooperative relationship under mutual agreement and through financial assistance for investment and lending in various projects: Hospital Public-Private Partnership (PPP) Project in the Republic of Turkey¹, Cooperation Agreement on reinsurance cooperation², Vientos Los Hercules Wind Power Generation Project in the Argentine Repubic³ , which was implemented under the agreement mentioned earlier, Reinsurance underwriting for capital investment project into Pineapple Plantation and Agro-Processing Facility in the Republic of Sierra Leone⁴ and Ghorasal Polash Urea Fertilizer Project in the People’s Republic of Bangladesh⁵. In order to further enhance and leverage the mutual partnership, NEXI and MIGA have determined to sign a new Cooperation Agreement on comprehensive business cooperation such as providing support for joint projects, and holding regular consultations.

Also, this Cooperation Agreement aims to create new business opportunities for Japanese companies operating in developing countries by providing co-insurance and reinsurance for investment and lending in such countries, while effectively combining MIGA’s unique expertise as an international financial institution and NEXI’s accumulated know-how of financial assistance for Japanese entities. Under the agreement, NEXI and MIGA are expected to closely work together in order to promote effective use of private sources for emerging and developing countries where Japanese companies are seeking to expand their business, and for oil producing countries suffering from the oil price crash.

This Cooperation Agreement also meets the purpose of Japan’s Infrastructure System Export Strategy as it aims to encourage Japanese companies to make investments into developing countries through creating an investment-friendly environment for them.

Furthermore, it is in line with NEXI’s efforts to enhance international cooperation with related organizations under the ongoing worst economic crisis since the Second World War, triggered by the global impact of the COVID-19 pandemic. Working closely with MIGA to provide financial support for developing countries hit hard by Coronavirus will allow NEXI to expand its scope of assistance for Japanese companies operating in such areas including Latin America and Africa.

NEXI will continue to actively support Japanese companies’ business development overseas, as well as their exports, investments and lending into developing economies, by enhancing cooperation with international financial institutions.

Focus Areas for Partnership

1. 1. Holding consultations on regular basis to identify prospects for Joint Projects, including sharing of information related to any potential Joint Projects and potential clients.
2. 2. Joint marketing efforts and seminars between both parties.
3. 3. Sharing of information related to reinsurance cooperation while clarifying requirements and procedures for such exchange.
4. 4. Sharing of necessary information to proceed with Joint Projects, implementing Joint Due Diligence.

About MIGA

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $59 billion in guarantees across 118 developing countries.

Contact:
Corporate Planning and International Relations Group
Telephone: +81-3-3512-7665
Power Group, Structure and Trade Finance Insurance Department
Telephone: +81-3-3512-7340

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