The facility aims to expand access to finance in emerging markets.
Under the arrangement, MSIG provides credit insurance to support IFC’s increased lending to banks and financial institutions in emerging economies.
The facility focuses on improving access to credit for SMEs and other growth-oriented sectors.
The credit insurance policy forms part of IFC’s Managed Co-Lending Portfolio Program. The programme seeks to mobilise private-sector capacity for development finance.
By transferring part of the credit risk to insurers, the structure allows IFC to improve its capital efficiency. It also enables additional lending in markets where long-term financing is limited.
“At MSIG USA, our political risk and trade credit expertise is grounded in MS&AD’s broader mission to contribute to a more vibrant society,”
said Daniel Riordan, Head of Political Risk and Trade Credit at MSIG USA.
“With A+ Class XV financial strength and experience working across regions, we are pleased to support financial resilience and economic development in emerging markets alongside IFC.”
“We are honoured to participate in this programme through a collaboration with MSIG USA and to contribute to the sustainable development of the global environment and society,”
said Junichiro Mizukami, Managing Executive Officer at Mitsui Sumitomo Insurance Company, Limited (MSI Japan).
The US$6 billion credit insurance policy ranks among the largest arranged by a multilateral development institution.
It will support up to US$10 billion in new lending by the IFC to commercial banks and other institutions.
It marks MSIG’s first participation in an IFC MCPP credit insurance facility.
The partnership aligns with IFC’s broader mandate to support private-sector development, job creation and economic resilience in emerging and developing economies.
Featured image credit: Edited by Fintech News Hong Kong, based on image by nampix via Freepik