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

Product Name Buyer Credit Insurance
Link to Product Website
Provider Name SERV (Swiss Export Risk Insurance) - Switzerland
Product Definition Cover against default in connection with the financing of Swiss export transactions.

Insurable risks:

* Political risks such as extraordinary measures or warlike events
* Transfer risks like the non-conversion/non-transfer of amounts in the national currency.
* Risks of force majeure, where not insurable elsewhere on acceptable market terms.
* Credit risks such as insolvency of the buyer or non-payment of the debt within 3 months of its falling due (protracted default).

The insured percentage for buyer credit insurance is generally 95 percent for all risks; the bank may not pass on the residual risks. The waiting period is 1 month.

Project finance
The project finance model is increasingly being chosen for major infrastructure projects. A company is set up for this purpose to act as the project operator. This company then repays the loan, which is generally granted by a banking consortium, from the funds generated by the project.

If the project company gets into financial difficulties, the creditors and SERV cannot fall back on additional security such as government or bank guarantees. SERV therefore thoroughly checks all the risks associated with the project, usually with the help of outside industry experts.

For project finance, SERV can cover the political and transfer risk of the buyer country as well as the project company's buyer risk.

Product Type Export Credit
Defined Risks Covered Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
Commercial Risks: Counter-Party Performance
More on Risks Covered
Eligible Form of Investments Bank Loans
Non-Bank Loans
Shareholder Loans
More on Eligible Investments
Eligible Currency of Underlying Investment Covered by this Product Foreign Currency (any currency other than developing host country currency)
Eligible Countries & Regions n.a.
More on Eligible Countries
Eligible Applicants PRIVATE: Companies headquartered in Risk Mitigation Provider Home Country
PRIVATE: Minimum Product or Service Content Requirement from Risk Mitigation Provider Home Country
More on Eligible Applicants
Eligible Sector n.a.
Maximum Tenor Over 20+ years
Max. Absolute Amount (USD) Over 350+ MM
Max. % of Project Costs Covered 75+% to 100%
Max. % of Export Content Covered Over 85+%
Fees Market-based
More on Fees
More on Country Classification
Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes link
Environmental standards: Yes link
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Source(s) n.a.
For more information, contact n.a.
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name SERV (Swiss Export Risk Insurance) - Switzerland
Institution Type PUBLIC: Multilateral Development Bank
Ownership Government of Switzerland
Head Office Kirchenweg 8; PO Box CH - 8032 +41 (0)44 384 4777
Provider Home Country Switzerland
Rating n.a.
Main Risk Mitigation Products Buyer Credit Insurance (SERV)
IRG Guarantee (IRG)
Attachments n.a.
Additional Links
Entered On: 01/10/2008 at 06:20 PM
Updated On: 02/10/2012 at 12:40 PM