NEWS – World Bank Group Guarantee Platform Goes Live

HIGHLIGHTS

Introduction

• Launch Date: July 1, 2024
• Host: Multilateral Investment Guarantee Agency (MIGA)
• Aim: Boost WBG annual guarantee issuance to $20 billion by 2030

Objectives

• Simplify: Create a one-stop-shop for WBG guarantee business
• Efficient: Streamline processes for speed and efficiency
• Comprehensive: Provide a market-friendly menu of guarantee options

Coverage Types

1. Credit Guarantees: For loans to public or private sectors
2. Trade Finance Guarantees: For trade finance projects involving public entities
3. Political Risk Insurance: Against non-commercial risks for private sector projects or public-private partnerships

Background

• WBG Evolution Process: Focus on enabling and catalyzing private capital flows
• G20 Independent Expert Group’s Report: Called for expanded use of guarantees to mitigate risk and unlock private finance
• Private Sector Investment Lab (June 2023): Identified barriers and solutions for private sector investment in emerging markets

Impact and Vision

• Transformative Solution:
  • Revolutionize development financing
  • Align with efforts to mobilize private capital for development
• Collaborative Efforts:
  • Supported by IFC’s advisory and financial instruments
  • Drive impactful solutions in sectors like energy, pandemic preparedness, and climate action

Fiscal Year 2024 Performance

• New Guarantees Issued: Approximately $10.3 billion
  • MIGA: $8.2 billion
  • IFC: $1.4 billion
  • World Bank: $700 million

ABOUT WORLD BANK GROUP GUARANTEES

• Inception: 2024
• Purpose: Consolidate guarantee products and experts from across WBG institutions at MIGA
• Goals:
  • Simplify and streamline processes
  • Enhance accessibility and de-risk investments in developing countries
  • Achieve $20 billion annual guarantee issuance by 2030