MSIG USA, the insurance arm of global insurance company MS&AD Insurance Group Holdings, announced its participation in an innovative investment structure with KfW Group subsidiary DEG.
DEG launched the initiative during the Hamburg Sustainability Conference, leveraging $500 million in funding to mobilize private capital to support sustainability projects in emerging and developing markets.
Under the arrangement, MSIG USA will provide credit insurance to support the fund, helping to unlock additional private investment while enabling DEG to expand financing for projects that promote economic growth, infrastructure development, renewable energy, financial inclusion and other sustainable investments in developing markets.
Daniel Riordan, head of political risk and trade credit and guarantees at MSIG USA, said: “At MSIG USA, we believe insurance can be a catalyst for sustainable investing. This transaction demonstrates how specialized insurance solutions can help mobilize private capital, expand access to finance and strengthen economic resilience in developing markets.
“It reflects our wider mission to contribute to a more resilient society and help secure a bright future for our planet, and we are proud to work with DEG and its partners on this important initiative.”
The fund is expected to support approximately 45 companies in the areas of infrastructure, enterprise, project finance and financial institutions. This novel framework enhances DEG’s ability to finance sustainable initiatives across emerging and developing economies.
Monika Beck, Managing Director of DEG, commented: “DEG has been providing financing and advisory services to private companies in developing and emerging market countries for more than 60 years. Our mission is to promote private sector investment with strong development impact. Therefore, we also raise additional capital in the areas where it matters most through our fund advisory entity, DEG Impact.
“Today’s agreement with MSIG USA and our partners is a clear testament to the concept that our portfolio-based guarantee structures can mobilize institutional investors into emerging and developing markets. We are very pleased to facilitate this partnership between the public and private sectors, unlocking new, broader and impactful collaborations.”
