RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Political Risk Guarantee
Link to Product Website
Provider Name IADB (Inter-American Development Bank Group)
Product Definition The IDB offers several types of political risk guarantees for debt instruments: breach of contract guarantees, currency convertibility and transferability guarantees and guarantees for other political risks. Coverage needs are tailored for each project to cover specified risk events related to non-commercial factors. Coverage extends up to 50 percent of project costs or $150 million, whichever is less.
Product Type Partial Risk Guarantee
Defined Risks Covered Political Risks: Breach of Contract
Political Risks: Expropriation
Political Risks: Currency Transfer and Convertibility
Eligible Form of Investments Bonds
Bank Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions n.a.
More on Eligible Countries
Eligible Applicants All
Eligible Sector No Specific Sector
Maximum Tenor 10+ to 15 years
Max. Absolute Amount (USD) 100+ to 250 MM
Max. % of Project Costs Covered 25+% to 50%
Max. % of Export Content Covered Over 85+%
Fees Market-based
Fees: Facility fee charged for guarantees with sovereign counter-guarantee; for non-sovereign guarantee operations fees are determined on a case-by-case basis.

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Others:
More on Other Standards
Source(s) n.a.
For more information, contact
Structured and Corporate Finance Department, IADB (Inter-American Development Bank)
Email: SCF@iadb.org
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name IADB (Inter-American Development Bank Group)
Institution Type PUBLIC: Multilateral Development Bank
Ownership Owned by 47 member countries
Head Office IDB Headquarters 1300 New York Avenue, N.W. Washington, D.C. 20577, USA
Provider Home Country United States
Rating n.a.
Main Risk Mitigation Products Loans
Grants
Guarantees
Equity Investments
Technical Cooperation
Financing Solutions
Attachments n.a.
Additional Links www.iadb.org
www.iadb.org/en/projects/projects,1229.html
www.iadb.org/en/news/news,2359.html
www.iadb.org/en/research-and-data/research-data,1612.html
Entered On: 07/02/2007 at 02:47 PM
Updated On: 05/07/2013 at 09:35 AM