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

Product Name Investment Guarantees
Link to Product Website
Provider Name AGA (Foreign Trade and Investment Promotion Scheme) - Germany
Product Definition Investment guarantees cover losses resulting from the following political risks:

* Expropriation risk - nationalization, expropriation or sovereign acts which in their effects are equivalent to expropriation
* Breach of contract risk - the breach of legally binding commitments made by the government or other entities directed or controlled by the government, in as much as the project company is entitled to these commitments and these commitments are specified in the guarantee policy (for detail please refer to our leaflet on Breach of Contract)
* War risk - war or other armed conflicts, revolutions or civil disturbance or terrorist acts associated with such events
* Moratorium risk - payment embargoes or moratoriums
* Convertibility and transfer risk - impossibility of converting or transferring amounts deposited with a sound bank for their transfer to the Federal Republic of Germany

The question whether one of these risks has occurred is evaluated in the event of loss by verifying the actual circumstances on the basis of the German principles of law and in consideration of international law.

Product Type Political Risk Insurance
Defined Risks Covered Political Risks: Breach of Contract
Political Risks: Expropriation
Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
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 Both local and foreign currency
Eligible Countries & Regions n.a.
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 15+ to 20 years
More on Maximum Tenor
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered Max./under 25%
Max. % of Export Content Covered Max./under 50%
Fees Fixed
No handling fee is charged for investments of up to EUR 5 million. For amounts exceeding EUR 5 million a handling fee of 0.5‰ flat has to be paid, but the total fee for each application may not exceed EUR 10,000.

After the issuance of the policy a premium of 0.5% is charged annually.
For more details please refer to the leaflet on Fees and Premiums.
More on Fees

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: Yes link
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Source(s) n.a.
For more information, contact
Email: investitionsgarantien@de.pwc.com
Phone: 49 (0) 40 88 34 - 94 51
Attachments n.a.
Additional Links n.a.
Deals n.a.

Provider Name AGA (Foreign Trade and Investment Promotion Scheme) - Germany
Institution Type PUBLIC: Multilateral Development Bank
Ownership PwC and EulerHermes are mandated to manage the guarantee schemes
Head Office PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft New-York-Ring 13 22297 Hamburg Postfach 60 27 20 22237 Hamburg
Provider Home Country Germany
Rating n.a.
Main Risk Mitigation Products Investment Guarantees (AGA/PwC)
Untied Loan Guarantees (AGA/PwC)
Export Credit Guarantees (AGA/EulerHermes)
Attachments n.a.
Additional Links
Entered On: 01/23/2008 at 12:07 PM
Updated On: 06/04/2009 at 02:28 PM