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

Product Name Political Risk Insurance
Link to Product Website
Provider Name COFACE (Compagnie française d'Assurance pour le commerce extérieur) - France
Product Definition Unistrat Coface’s covers are designed for businesses of any size that export, import, invest or finance activities outside their home country, under international contracts. Whether these activities involve a public entity or a private partner, coverage is available for contracts, payments, transfer of receivables, deliveries, bonds and guarantees. Clients can also insure their assets anywhere in the world (host country, other country and in some cases, the insured’s country of origin) without restriction of territory.

They cover a complete and ever-expanding range of causes of loss, because Unistrat Coface considers political risk in its broadest sense: any event or decision of a political or administrative order, be it national or international, which can cause financial, commercial or economic loss to a business. The following are currently included in this definition:
• Events: riots, civil commotion, strikes, wars (except for armed conflict among the five major powers, or nuclear warfare) and malicious acts committed in this context.
• Arbitrary decisions by a public entity: failure to comply with contract obligations or with an arbitration award breach of contract, selective discrimination, boycott, etc.
• Political decisions: (international, governmental or administrative, including decisions by a regional authority): embargo, boycott, revocation of license, selective discrimination, inconvertibility of local currency, general non-transfer of assets, in addition to losses covered by specific products (e.g., confiscation, expropriation, nationalization, deprivation), etc.

Product Type Political Risk Insurance
Defined Risks Covered Political Risks: Regulatory
Political Risks: Breach of Contract
Political Risks: Expropriation
Political Risks: Devaluation
Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
Eligible Form of Investments All
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions All
Eligible Applicants PRIVATE: All
Eligible Sector No Specific Sector
Other Sector
Maximum Tenor 10+ to 15 years
Max. Absolute Amount (USD) Over 350+ MM
Max. % of Project Costs Covered 75+% to 100%
Max. % of Export Content Covered Over 85+%
Fees Fixed
Premiums based on country, industry, and transaction characteristics and number of risks covered. Discounts apply if more than one risk is insured against.

Other Conditions Sovereign Counterguarantee: Yes
Anti-Corruption and Governance Standards: Yes
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Source(s) n.a.
For more information, contact
Unistrat Corporation of America
1350 Broadway, Suite 2005
New York - NY 10018
Email: souscription@unistrat.fr
Phone: (212) 389 6470
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name COFACE (Compagnie française d'Assurance pour le commerce extérieur) - France
Institution Type PUBLIC: Multilateral Development Bank
Ownership Shareholders of Coface, the parent company.
Head Office 1, rue de L’Union - 92843 Rueil Malmaison
Provider Home Country France
Rating Aa3/NR/AA+
Main Risk Mitigation Products Export Credit Guarantee (COFACE)
Attachments n.a.
Additional Links www.unistrat.com
Entered On: 08/03/2007 at 03:19 PM
Updated On: 09/07/2011 at 12:18 PM