brochure/inside 9/13/01 4:53 PM Page 1 · brochure/inside 9/13/01 4:53 PM Page 2 "[Your staff] has worked with great professionalism , and in full respect of the rights of both parties,

In today’s interconnected globaleconomy, businesses increasinglyrecognize that investment opportuni-ties exist in emerging economies. Butfor multinational companies andsmall- and medium-sized businessesalike, concerns about uncertain poli-cy environments and perceptions of political risk, as well as lack ofawareness of specific opportunities,often inhibit investment. As a result,most foreign direct investment goesto only a handful of countries, leavingthe world’s poorest economies largelyignored and many attractive invest-ment opportunities unexplored.

MIGA:Helping investors,

helping emerging economies

The Multilateral Investment

Guarantee Agency addresses

these concerns by offering

political risk insurance to

investors and lenders, and by

helping emerging economies

attract private investment.

brochure/inside 9/13/01 4:53 PM Page 1

MIGA:Bringing clients

unique strengths

MIGA both supports and draws on

the extensive resources of the

World Bank Group to offer clients

unparalleled knowledge of emerg-

ing economies.

MIGA’s unique strengths also derive from itsstructure as an international organizationwhose shareholders include most countries inthe world. This enables the agency to providean umbrella of deterrence against governmentactions that could disrupt investments, andallows it to influence the resolution of poten-tial disputes. MIGA’s capacity to serve as anobjective intermediary enhances investor confidence that an investment going into anemerging economy will be protected againstnon-commercial risks.


"[Your staff ] has worked with great professionalism, and in full respectof the rights of both parties, composing agreements with ability and sensitivity…Justice has been [served] according to the internationallaws, and the government understands the importance of a judicial orderable to grace both its citizens and the foreign ones as well."

—An Italian company acknowledging MIGA for its role in resolving an investment dispute

Offering insurancefor investors and lenders

MIGA’s guarantee program helps reduce the non-commer-cial risks associated with foreign direct investment. Newcross-border investments, multi-country projects, as well asexpansions and privatizations of existing projects, are eligiblefor coverage. MIGA protects against:

r Currency inconvertibility and transfer restrictions—lossesresulting from the inability to convert local currency andtransfer it outside the country.

r War and civil disturbance—losses resulting from physicaldamage to tangible assets or from a substantial interrup-tion of business.

r Expropriation—losses caused by actions depriving aninvestor of ownership or control.

r Breach of contract—losses resulting from repudiation orbreach of contract following denial of justice by the hostgovernment.

The agency’s top-rated insurance has many other benefits,allowing investors and lenders to venture into new marketswith confidence and achieve investment grade ratings orhigher for emerging market securities. Financial institutionsalso benefit by being able to leverage their country limits andthus reduce country risk provisioning and transaction costs.

Helping governmentsattract foreign directinvestment

MIGA also provides technical assis-tance to help emerging economies formulate and implement strategies forattracting and retaining foreign directinvestment. Through its capacity-building and investment facilitationservices, the agency provides adviceand tailored assistance to public and private organizations in image-building, sector targeting and outreach,and information dissemination.

Connecting investors toinvestment opportunities

MIGA’s investment information services connect investors to currentinformation on investment opportuni-ties, business operating conditions,potential partners, and resourcesthrough several innovative web portals. These online services offer anew medium for investor interaction.


The rightpeople, the rightproducts

Bringing investors, clients, and part-

ners the best the world has to offer,

MIGA’s 140 plus staff members hail

from over 45 countries and together

speak more than 30 languages. Staff

have extensive experience in political

risk insurance and investment promo-

tion, with backgrounds ranging from

banking to environmental policy, from

project finance to sector specialties,

including international law and dis-

pute settlement.

MIGA’s team spirit and transaction

focus foster responsiveness, creativi-

ty, and above all, a commitment to

clients. The agency customizes its

underwriting and investment promo-

tion services, and provides advice as

needed—to make sure the final deal is

the right one for the client.


MIGA’s unmatched country and sec-toral knowledge and experience—together with rigorous underwritingand a personalized approach—enableit to effectively meet the needs of itsbusiness clients.

The agency responds to these needsthrough sector teams that focus,among other areas, on manufacturing,services, infrastructure, finance,agribusiness, mining, oil and gas, andtelecommunications. Complementingthis structure are specialists who con-duct country analyses and followregional developments, as well aslawyers who help with contract negoti-ation and other legal needs.

Together these teams provide clientswith an integrated package of sectoraland country information and advice onhow to structure deals to make thembankable and sustainable. Flexibility inunderwriting—basing premiums onrisk and offering a selection in types ofcoverage—assures a client-specific,customized approach. The teams goseveral steps further, supportingclients during project implementation

and mediating potential investmentdisputes should the need arise.

When advising investment promotionintermediaries, MIGA also uses a custom-made approach that focuseson designing marketing strategiesbased on countries’ competitivestrengths. From a multi-componenttraining program in Tunisia to anassessment of the investment promo-tion capabilities of East Asianeconomies, MIGA applies its breadthof experience and knowledge of globalbest practices to help its clients attractforeign investment.

While MIGA’s approach to individualclient relationships is personal innature and spirit, its vision remainsglobal: The agency is committed to encouraging good corporate citizen-ship and supporting individual proj-ects around the world that create jobs,strengthen local economies, andimprove lives.

The MIGA Promise:A commitment to clients,

partners, and results

a small-company spirit with a big vision

Maintaining


"MIGA plays a unique and valuable role in the political risk insurance

world, helping to broaden the market to new frontiers, and opening up

the way for other public and private insurers. Through its reinsurance and

coinsurance activities, MIGA is able to extend the reach of partner insur-

ers, like Lloyd’s, while at the same time maximizing its own impact in

developing countries."

— Max Taylor Chairman, Lloyd’s of London, 1998-2000


partnerships for success

MIGA constantly seeks innovativeways to meet client needs, mobilizingpublic and private partners to expandthe political risk insurance industry’scapacity as a whole and to provide thebest service possible to its clients.

The agency collaborates with privateand public insurers through its coinsurance and reinsurance pro-grams. For investors, this collaborationmobilizes increased political riskinsurance coverage for longer periodsof time. It also allows MIGA to providea one-stop service to meet all of itsclients’ guarantee needs. For insurers,these partnerships offer the addedcomfort of MIGA’s involvement in theevent of a dispute or claim.

MIGA also cooperates with regionalmultilateral development banks andnational export credit and investmentguarantee agencies to share knowledgeand promote deals of joint interest.MIGA works closely with internationalorganizations such as the Organizationfor Economic Cooperation andDevelopment to ensure that clientsreceive good, up-to-date advice andinformation.

The agency teams with a host of busi-ness information providers to furnishthe content of its online informationservices. These partners offer manyunique information resources forinvestors, such as regional investmentdatabases, trade and investment statis-tics, and low-cost access to specializedinternational business publications.

MIGA recognizes the tremendousscope for private and public partners towork together, and the importance ofengaging other organizations, in itsquest to serve the needs of all of its clients.

Forging


From a geothermal power plant in Kenya to a rice operation in Uganda,

from a manufacturing project in Angola to an agribusiness enterprise in

Côte d’Ivoire, MIGA’s special focus on Africa is yielding results. The agency

played a major role in facilitating one of the largest investment ever in an

African mine, and guaranteed an investment to provide electricity across

countries, from South Africa to Swaziland to Mozambique.

MIGA’s focus on Africa is further reflected in its presence in the region.

Field- based staff work with business clients throughout the area, provide

hands-on technical assistance to investment promotion agencies, and

bring know-how directly to those who need it most.

Making a difference in Africa


for sustainable results

MIGA’s role is to help emergingeconomies on the road to stable, sustainable, and equitable growth,ensuring that businesses and the peopleof these countries benefit along the way.

The agency’s involvement in a projectnot only mitigates non-commercialrisks but encourages social and envi-ronmental best practices. Companiesincreasingly realize that it is in theirinterest to synchronize their long-terminvestment goals with the develop-mental objectives of the countries andcommunities in which they operate.MIGA works to support these interestsby focusing on sustainable results forboth countries and businesses.

MIGA-sponsored activities have con-siderable breadth, with a diversity ofinvolvement ranging from multi-coun-try gas pipelines in Brazil-Bolivia andArgentina-Chile to the enhancementof banking capacity in Bulgaria, fromsteel slag processing in Saudi Arabiaand Egypt to the development of the

power sector in China. Projects thatMIGA supports typically convey manydirect benefits to host countries,including local job creation, skillstransfer, and a general positive impacton the economy through fiscal rev-enues and export earnings.

At the broader level, the agency playsan important catalytic role, with everyMIGA-insured dollar generating anaverage of five additional dollars ininvestment. MIGA also providesinvestment promotion intermediarieswith the tools and advice needed to tar-get and attract FDI. Increasingly,MIGA’s support is being directed tofrontier markets and the poorer coun-tries, where investment opportunitiesremain unexplored.

Striving


Marking a healthy breakthrough for financing in developing countries,

MIGA guaranteed the first-ever securitization of medical equipment loans

and leases in Brazil. As part of the deal, asset-backed floating-rate notes

are secured by US dollar-denominated financing contracts for medical

equipment—such as MRI and CAT scanners—sold to private hospitals,

clinics, and health care centers in Brazil.

MIGA proved key to improving the risk profile of the notes and helping

the investor secure the financing needed, enabling the issue to be rated sig-

nificantly above Brazil’s local and foreign currency ratings. This transaction

opens the way for more companies to use this mechanism to raise capital

for much-needed investment in developing countries.

Promoting innovative capital market deals


The digital vanguard: logging on to opportunities

MIGA’s challenge in the face of achanging global economy is to remainan industry leader in facilitating for-eign direct investment, especially tothose countries that need it most.

To meet this challenge, MIGA will keepits focus on promoting investment in poorer countries, particularly inAfrica, encouraging investmentsbetween developing countries, andsupporting more capital markets-basedand complex infrastructure deals—without losing sight of smaller compa-nies’ needs.

MIGA:Facing the future

At the same time, MIGA will continueto be innovative and flexible in thetypes of projects it supports and products and services it provides,while mobilizing its partners toincrease the availability of politicalrisk insurance for countries andclients. MIGA will also continue todevelop cutting-edge online informa-tion services to bring investmentopportunities in emerging economiesstraight to the desktops of the busi-ness community.

MIGA, above all, will use the rightpeople to deliver the right products toinspire confidence in a world ofopportunities.

MIGA's pioneering use of the Internet drove the creation of theInvestment Promotion Network (IPAnet), a leading-edge web portalthat links corporate investors to investment information in emerging markets, and PrivatizationLink, which offers investors free access toinformation on privatization opportunities worldwide and provides governments a low-cost means of attracting bidders for state-owned enterprises. A companion service—PrivatizationLink Russia—wasrecently launched, and a host of other online tools are in the works.


Contact

Marketing Unitt. 202.458.9292f. 202.522.2630 [email protected]

www.miga.orgwww.ipanet.netwww.privatizationlink.comrussia.privatizationlink.com

Multilateral Investment Guarantee Agency1818 H Street, NW Washington, DC 20433USA

World Bank Group


Documents

brochure/inside 9/13/01 4:53 PM Page 1 · brochure/inside 9/13/01 4:53 PM Page 2 "[Your staff] has worked with great professionalism , and in full respect of the rights of both parties,