Export Development Canada (EDC/Canada)

Political Risk Insurance

Instrument Type	Insurance
Eligible investments, borrowers, and projects	Overseas investments that are beneficial to Canada including : - Direct investment with joint venture or foreign subsidiary - Loans issued to a joint venture or foreign subsidiary - Physical assets held overseas - Other forms of asset or commitment held overseas
Eligible beneficiaries	Lenders, private sector companies
Eligible forms of investment	Equity: equity (paid-in-capital) Debt: Loans, shareholder loans Guarantees: e.g. financial guarantees or completion guarantees, physical assets, service agreements, production sharing contracts (only related to political risks)
Risk types covered	Political Risk Insurances • Breach of contract • Creeping or outright expropriation • Political Violence • Transfer and Convertibility restrictions • Repossession • Non-payment by a government
Maximum tenor	up to 15 yrs. (unless otherwise approved)
Maximum amount or cover	• Equity coverage: normally 90% of eligible losses, no stated project limit • Bank loans: up to 100% of principal and interest, no stated project limit
Fees	Premiums based on country, industry, and transaction characteristics and number of risks covered; discounts apply if more than one risk is insured against.