MSIG USA and Mitsui Sumitomo Insurance Company (MSI Japan) (collectively, MSIG) have partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to launch a new insurance-backed credit facility designed to expand access to finance in emerging markets.
Under the facility, MSIG will support IFC’s efforts to increase lending to banks and financial institutions in emerging markets.
The credit insurance policy is part of IFC’s Management of Co-Lending Portfolio Program (MCPP), which aims to leverage the private sector’s development finance capabilities.
This structure is designed to increase IFC’s capital efficiency by transferring some of its credit risk to the insurance market.
This mobilization of private capital allows IFC to increase its lending capacity, thereby improving access to credit for small and medium-sized enterprises and other growth sectors in markets where long-term financing is often limited.
“At MSIG USA, our political risk and trade credit expertise is rooted in MS&AD’s broader mission to contribute to a more dynamic society,” said Daniel Riordan, director of political risk and trade credit at MSIG USA. “With A+ XV-rated financial strength and experience working seamlessly across regions, we are proud to work with partners like IFC to achieve financial resilience and economic development in emerging markets.”
“We are honored to participate in this program through our partnership with MSIG USA and are pleased to contribute to the sustainable development of the global environment and society,” said Junichiro Mizukami, Managing Executive Officer of MSI Japan.
This US$6 billion credit insurance policy is one of the largest credit insurance projects arranged by a multilateral development agency to date, and is the latest implementation by the International Finance Corporation under the MCPP framework.
It will support IFC’s provision of up to $10 billion in new loans to commercial banks and other institutions.
Additionally, this marks MSIG’s first participation in the IFC MCPP credit insurance facility, leveraging its global underwriting platform and expertise in complex cross-border credit risks, which is closely aligned with the IFC’s risk framework and builds on MSIG’s long-standing involvement in structured risk transfer.
“This credit insurance facility demonstrates how private insurers can unlock greater investment and provide more lending to small and medium-sized enterprises in emerging markets,” said Kevin Njiraini, director of syndicated lending and mobilization at IFC. “We appreciate MSIG’s partnership in delivering this facility, which mobilizes insurers’ underwriting capacity to drive growth and create jobs.”
