African Development Bank, International Financial Institutions Launch First-ever Co-Guarantee Platform The Bank and its companions created the Co-Guarantee Platform for Africa, an cutting edge and collective de-risking device, to deal with the perceived prime chance around the continent JOHANNESBURG, South Africa, November 7, 2018/APO Group/ — The African Development Bank (www.AfDB.org) along Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (www.ICIEC.com), African Trade Insurance Agency (ATI) (www.ATI-ACA.org) and GuarantCo, on Wednesday entered right into a Memorandum of Understanding for a Co-Guarantee Platform (CGP). This initiative, the first of its sort and being promoted via the Bank, was once signed at the first day of the Bank’s inaugural Africa Investment Forum in Johannesburg. The Bank and its companions created the Co-Guarantee Platform for Africa, an cutting edge and collective de-risking device, to deal with the perceived prime chance around the continent and the loss of capability of conventional lenders to offer chance mitigation merchandise for tasks. The platform is meant to increase the amount of insurance coverage and ensure answers to be had to undertaking sponsors and their bankers in a market-responsible way. The goal is to mobilize higher quantities of funding that might in a different way now not happen within the area within the absence of inexpensive chance mitigation merchandise. The Platform is expected to strengthen the relevance of the respective establishments’ tools within the Region via enforcing joint chance mitigation transactions. Speaking in regards to the Bank’s rationale for the Platform, Akinwunmi Adesina, President of the African Development Bank Group mentioned, “There are many guarantee providers that can offer various types of credit enhancement and risk mitigation instruments in Africa, but cooperation among them has been either non-existent or on an ad hoc basis. Hence the need for a more formal collaboration among guarantee providers to maximize the use of their products in Africa.” These 4 preliminary companions are monetary establishments with sturdy enjoy running at the continent, willing to take part to be able to cooperate and create synergies with different construction and advertisement establishments in an efficient and market-responsive way. The platform is open to extra individuals including authentic construction establishments and the non-public sector. This initiative could have a global outreach and purpose at crowding in reluctant chance mitigation and credit score enhancement suppliers the world over to make extra tasks occur in Africa- on extra inexpensive terms for each African and overseas buyers and lenders alike. Dr. Bandar M. H. Hajjar, the President of the Islamic Development Bank Group, and Chairman of the Board of Directors of the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC), famous that ICIEC, as a multilateral establishment has a robust footprint in Africa with 23 member international locations from inside the continent, and has been actively mobilizing insurance coverage and reinsurance capability from the global marketplace for Africa for the ultimate 25 years. ICIEC intends to avail its services and products, experience and community to cooperate with the individuals of the Co-Guarantee Platform, to be able to construction jointly cutting edge chance mitigation answers that may help to facilitate and mobilize investment capability for medium and lengthy tenor tasks in Africa. George Otieno, Chief Executive Officer of the African Trade Insurance Agency (ATI) says “we welcome this initiative that was first suggested by the African Development Bank during the second meeting of the Abidjan Union held in 2017. As the membership of African states in ATI grows – in part thanks to the financial assistance of the African Development Bank – we believe that no single institution alone can provide the amount of risk mitigation required to catalyze Africa’s enormous infrastructure requirements. While ATI already works closely with the private insurance market, the recent insurance transaction concluded among the Bank, ATI and the private reinsurance market to insure a portfolio of the Bank’s non-sovereign financial sector loans in Africa, demonstrates the powerful impact cooperation among institutions can have on bettering the availability and terms and conditions of insurance in the region”. Philippe Valahu, CEO, Private Infrastructure Development Group, mentioned: “GuarantCo is delighted to participate in the Co-Guarantee Platform, particularly as it draws on our extensive experience in delivering guarantee and credit enhancement solutions in Africa. This initiative enables us to collaborate with institutions that share a similar vision as us; not only by recognising the deployment of capital and investment on the continent but, most importantly, by enabling local capital markets through risk mitigation solutions. We hope that the joint capacity, as created through this initiative, will result in more efficient information sharing, a better overview of risk across the continent and mobilisation of greater guarantee capacity”. Distributed via APO Group on behalf of African Development Bank Group (AfDB).
About the African Development Bank Group
The African Development Bank (AfDB) Group (www.AfDB.org) is the premier construction finance establishment in Africa with a mandate to spur sustainable financial construction and social development within the continent, thereby contributing to poverty relief. The Bank Group achieves this goal via mobilizing and allocating assets for funding within the continent; and offering policy recommendation and technical help to reinforce construction efforts. The African Development Bank’s approved capital of round US$100 billion is subscribed to via 80 member international locations made up of 54 African international locations and 26 non-African international locations.
About Islamic Corporation for the Insurance of Investment Export Credit (ICIEC) .
ICIEC (www.ICIEC.com) is a member of the Islamic Development Bank (IsDB) Group. ICIEC was once established to offer funding and export credit score insurance coverage answers compliant with Shariah rules and likewise to give a boost to the industrial members of the family between member international locations of the Organization of the Islamic Cooperation. ICIEC´s Investment Insurance Solutions for banks and monetary establishments supply coverage against losses brought about via non-commercial dangers such as political dangers and non-honouring of economic tasks via the sovereign or sub-sovereign
About Africa Trade Insurance Agency (ATI)
ATI (www.ATI-ACA.com) is a multilateral establishment established in 2001 with its headquarters’ in Nairobi, Kenya. Its mandate is to advertise and broaden industry and investments for, and inside, African international locations via providing credit score and political chance insurance coverage answers. ATI has 23 shareholders, including 14 African member international locations and 9 institutional shareholders, including the AfDB.
ATI gives a spread of insurance coverage merchandise, including Breach of Contract Insurance, Liquidity Support, Political Risk Insurance, Commercial Credit Insurance, and Surety Bonds and Counter-Guarantees.
As of YE 2017, ATI had supported US$35 billion in industry and investments throughout Africa. Since 2008, ATI has maintained an ‘A’ solid rating from Standard & Poor’s.
About GuarantCo (GuarantCo)
GuarantCo (www.GuarantaCo.com) was once established to mobilise local forex funding for infrastructure tasks and reinforce the improvement of economic markets in decrease source of revenue international locations. GuarantCo is a part of the Private Infrastructure Development Group (PIDG). GuarantCo is supported via the governments of the United Kingdom, Switzerland, Sweden, the Netherlands and Australia and is rated AA- via Fitch and A1 via Moody’s. www.GuarantCo.com