Multilateral agencies provide guarantees and loans for investments that are aligned with their development goals. Their objectives, experiences and diplomatic leverage often enable them to provide political risk cover for countries and projects with higher political risks.
Asian Development Bank (ADB)
ADB’s goal is to support Asia and the Pacific’s social and economic development by providing loans, guarantees, grants, equity investments or technical assistance to promote investment in the region. The organisation can provide political risk guarantees for loans from commercial banks, shareholders, guaranteed loans, bonds, financial leases, letters of credit, promissory notes, and bills of exchange.
Credit Guarantee and Investment Facility (CGIF)
Established in 2010, CGIF promotes financial stability and boosts long-term investments in the region via its mandate to develop local bond markets in the ASEAN+3 region. It offers guarantees on local currency denominated bonds in order to facilitate access to local bonds with longer maturities, reducing dependency on short-term foreign currency borrowing whilst addressing currency and maturity mismatch. Increased local currency bond issuance will also promote financial stability in the region, whilst aiding the development of ASEAN bond markets. CGIF has received capital contributions of USD 700 million from ASEAN, the People’s Republic of China, Japan, Korea and ADB. More information can be found here.
International Finance Corporation (IFC)
Founded in 1956, IFC is a member of the World Bank group, working to support companies and financial institutions in over 100 emerging markets to create jobs, generate tax revenues and improve corporate governance and environmental performance, whilst contributing to local communities. IFC provides structured finance products, including Partial Credit Guarantees, to support cost-effective forms of financing that would not otherwise be readily available to clients. More information can be found here.
Multilateral Investment Guarantee Agency (MIGA)
A member of the World Bank Group, MIGA promotes investment in developing countries by providing political risk insurance guarantees to private sector investors and lenders.