I N S U R I N G I N V E S T M E N T S r E N S U R I N G O P P O R T U N I T I E S

MIGA shares the World Bank’s vision of a world

free of poverty, complementing the work of

other World Bank Group members in striving to

promote economic growth, expand markets,

encourage more favorable policy environments,

and improve the lives of people in emerging

economies.

MIGA is led in its mission by four guiding prin-

ciples: focusing on clients – serving investors,

lenders and host country governments by sup-

porting private enterprise and promoting

foreign investment; engaging in partner-ships – working with other insurers, govern-

ment agencies, and international organizations

to ensure complementarity of services and

approach; promoting developmental impact – striving to make a difference, consistent with

the goals of host countries and sound business,

environmental and social principles; ensuring financial soundness – balancing developmen-

tal goals and financial objectives through prudent

underwriting and sound risk management.

In today’s interconnected global economy, businesses increasingly recognize that investment opportu-nities exist in emerging economies. But for multinational companies and small- and medium-sized business-es alike, concerns about uncertain policy environments and perceptions of political risk, as well as lack of awareness of specific opportunities, often inhibit investment. As a result, most foreign direct investment goes to only a handful of countries, leaving the world’s poorest economies largely ignored and many attractive invest-ment opportunities unexplored.

MIGA: Helping investors,

helping emerging economies

The Multilateral Investment

Guarantee Agency promotes

foreign direct investment

into developing countries, in

order to support economic

growth, reduce poverty and

improve people's lives.

MIGA both supports and draws on the

extensive resources of the World Bank Group

to offer clients unparalleled knowledge of

emerging economies.

MIGA’s unique strengths also derive from

its structure as an international organization

whose shareholders include most countries

in the world. This enables the agency to

provide an umbrella of deterrence against

government actions that could disrupt invest-

ments, and allows it to influence the resolu-

tion of potential disputes. MIGA’s capacity to

serve as an objective intermediary enhances

investor confidence that an investment going

into an emerging economy will be protected

against non-commercial risks.

MIGA: Bringing clients unique strengths

"[Your staff] has worked with great professionalism, and in full respect

of the rights of both parties, composing agreements with ability and

sensitivity… Justice has been [served] according to the international

laws, and the government understands the importance of a judicial

order able to grace both its citizens and the foreign ones as well."

—An Italian company acknowledging MIGA for its role in resolving an

investment dispute

Offering insurancefor investors and lenders

MIGA’s guarantee program helps reduce the non-commercial risks associated with foreign direct investment. New cross-border investments, multi-country projects, as well as expansions and privatizations of existing projects, are eligible for coverage. MIGA protects against:

r Currency inconvertibility and transfer restrictions—losses resulting from the inability to convert local currency and transfer it outside the country.

r War and civil disturbance, including terrorism—losses resulting from physical damage to tangible assets or from a sub-stantial interruption of business.

r Expropriation—losses caused by actions depriving an investor of ownership or control.

r Breach of contract—losses resulting from repudiation or breach of contract following denial of justice by the host government.

The agency’s top-rated insurance has many other benefits, allowing investors and lenders to venture into new markets with confi-dence and achieve investment grade ratings or higher for emerging market securities. Financial institutions also benefit by being able to leverage their country limits and thus reduce country risk provisioning and transaction costs.

Helping governments attract foreign direct investment

MIGA also provides technical assistance to help emerging economies formulate and implement strategies for attracting and retaining foreign direct investment. Through its capacity-building and investment facili-tation services, the agency provides advice and tailored assistance to public and private organizations in image-building, sector targeting and outreach, and information dissemination.

Connecting investors to investment opportunities

MIGA’s investment information services connect investors to current information on investment opportunities, business operating conditions, potential partners, and resources through several innovative web portals. These online services offer a new medium for investor interaction.

The right people, the right products

Bringing investors, clients, and partners the

best the world has to offer, MIGA’s 140 plus

staff members hail from over 45 countries

and together speak more than 30 languages.

Staff have extensive experience in political

risk insurance and investment promotion,

with backgrounds ranging from banking to

environmental policy, from project finance to

sector specialties, including international law

and dispute settlement.

MIGA’s team spirit and transaction focus

foster responsiveness, creativity, and above

all, a commitment to clients. The agency

customizes its underwriting and investment

promotion services, and provides advice as

needed—to make sure the final deal is the

right one for the client.

MIGA’s unmatched country and sectoral knowledge and experience—together with rigorous underwriting and a personalized approach—enable it to effectively meet the needs of its business clients.

The agency responds to these needs through sector teams that focus, among other areas, on manufacturing, services, infrastructure, finance, agribusiness, mining, oil and gas, and telecommunications.Complementing this structure are specialists who conduct country analyses and follow regional devel-opments, as well as lawyers who help with contract negotiation and other legal needs.

Together these teams provide clients with an integrated package of sectoral and country information and advice on how to structure deals to make them bankable and sustain-able. Flexibility in underwriting—basing premiums on risk and offering a selection in types of coverage—assures a client-specific, customized approach. The teams go several steps further, supporting clients during project implementation and mediating potential investment disputes should the need arise.

When advising investment promotion inter-mediaries, MIGA also uses a custom-made approach that focuses on designing marketing strategies based on countries’ competitive strengths. From a multi-component training program in Tunisia to an assessment of the investment promotion capabilities of East Asian economies, MIGA applies its breadth of experience and knowledge of global best practices to help its clients attract foreign investment.

While MIGA’s approach to individual client relationships is personal in nature and spirit, its vision remains global: The agency is committed to encouraging good corporate cit-izenship and supporting individual projects around the world that create jobs, strengthen local economies, and improve lives.

The MIGA Promise: A commitment to clients,

partners, and results

Maintaining

a small-company spirit with a big vision

"MIGA plays a unique and valuable role in

the political risk insurance world, helping

to broaden the market to new frontiers, and

opening up the way for other public and private

insurers. Through its reinsurance and coin-

surance activities, MIGA is able to extend the

reach of partner insurers, like Lloyd’s, while at

the same time maximizing its own impact in

developing countries."

— Max Taylor

Former Chairman, Lloyd’s of London

MIGA constantly seeks innovative ways to meet client needs, mobilizing public and private partners to expand the political risk insurance industry’s capacity as a whole and to provide the best service possible to its clients.

The agency collaborates with private and public insurers through its coinsurance and reinsurance programs. For investors, this collaboration mobilizes increased political risk insurance coverage for longer periods of time. It also allows MIGA to provide a one-stop service to meet all of its clients’ guarantee needs. For insurers, these part-nerships offer the added comfort of MIGA’s involvement in the event of a dispute or claim.

MIGA also cooperates with regional multilat-eral development banks and national export credit and investment guarantee agencies to share knowledge and promote deals of joint interest. MIGA works closely with interna-tional organizations such as the Organization for Economic Cooperation and Development to ensure that clients receive good, up-to-date advice and information.

The agency teams with a host of business information providers to furnish the content of its online information services. These partners offer many unique information resources for investors, such as regional investment databases, trade and investment statistics, and low-cost access to specialized international business publications.

MIGA recognizes the tremendous scope for private and public partners to work together, and the importance of engaging other organi-zations, in its quest to serve the needs of all of its clients.

Forging

partnerships for success

From a geothermal power plant in Kenya to a

rice operation in Uganda, from a manufacturing

project in Angola to an agribusiness enterprise in

Côte d’Ivoire, MIGA’s special focus on Africa is

yielding results. The agency played a major role

in facilitating one of the largest investments ever

in an African mine, and guaranteed an invest-

ment to provide electricity across countries,

from South Africa to Swaziland to Mozambique.

In recognition of regional priorities, many of

MIGA’s projects are in areas highlighted by

the New Partnership for Africa’s Development

(NEPAD).

MIGA’s focus on Africa is further reflected in

its presence in the region. Field-based staff

work with business clients throughout the area,

provide hands-on technical assistance to invest-

ment promotion agencies, and bring know-how

directly to those who need it most.

Making a difference in Africa

MIGA’s role is to help emerging economies on the road to stable, sustainable, and equitable growth, ensuring that businesses and the people of these countries benefit along the way.

The agency’s involvement in a project not only mitigates non-commercial risks but encourages social and environmental best practices. Companies increasingly realize that it is in their interest to synchronize their long-term investment goals with the develop-mental objectives of the countries and com-munities in which they operate. MIGA works to support these interests by focusing on sustainable results for both countries and businesses.

MIGA-sponsored activities have consider-able breadth, with a diversity of involvement ranging from multi-country gas pipelines in Brazil-Bolivia and Argentina-Chile to the enhancement of banking capacity in Bulgaria, from steel slag processing in Saudi Arabia

and Egypt to the development of the power sector in China. Projects that MIGA supports typically convey many direct benefits to host countries, including local job creation, skills transfer, and a general positive impact on the economy through fiscal revenues and export earnings.

At the broader level, the agency plays an important catalytic role, with every MIGA-insured dollar generating an average of five additional dollars in investment. MIGA also provides investment promotion intermediar-ies with the tools and advice needed to target and attract FDI. Increasingly, MIGA’s support is being directed to frontier markets and the poorer countries, where investment opportu-nities remain unexplored.

Striving

for sustainable results

Marking a healthy breakthrough for financing

in developing countries, MIGA guaranteed the

first-ever securitization of medical equipment

loans and leases in Brazil. As part of the deal,

asset-backed floating-rate notes are secured

by US dollar-denominated financing contracts

for medical equipment—such as MRI and CAT

scanners—sold to private hospitals, clinics, and

health care centers in Brazil.

MIGA proved key to improving the risk profile

of the notes and helping the investor secure

the financing needed, enabling the issue to be

rated significantly above Brazil’s local and foreign

currency ratings. This transaction opens the way

for more companies to use this mechanism to

raise capital for much-needed investment in devel-

oping countries.

Promoting innovative capital market deals

MIGA’s challenge in the face of a changing global economy

is to remain an industry leader in faciliating foreign direct

investment, especially to countries that need it most. This

challenge has taken on greater significance in the wake of the

global economic downturn and decline in investment flows to

developing countries.

To meet this challenge, MIGA will continue to focus on using its

guarantees program to promote investment in poorer countries,

particularly in Africa, encourage investments between develop-

ing countries, and support innovative deals--without losing sight

of smaller companies’ needs.

At the same time, the agency will remain flexible in the types

of projects it supports and products and services it provides. It

will mobilize its partners to venture into new markets and to

increase the availability of political risk insurance. MIGA will also

continue to develop cutting-edge online information services to

bring investment opportunities in emerging economies straight

to the desktops of the business community.

MIGA, above all, will use the right people to deliver the right

products to inspire confidence in a world of opportunities.

MIGA: Facing the future

The digital vanguard:

logging on to

opportunities

MIGA's pioneering use of

the Internet drove the

creation of the Investment

Promotion Network (IPAnet),

a leading-edge web portal

that links corporate investors

to investment information

in emerging markets, and

Privatization-Link, which

offers investors free access

to information on privatiza-

tion opportunities worldwide

and provides governments

a low-cost means of attract-

ing bidders for state-owned

enterprises. In addition, cus-

tomized e-mail updates of

new investment content from

these web sites is available

through MIGA’s newest online

service—the FDI Xchange.

www.ipanet.netwww.privatizationlink.comwww.fdixchange.com

External Outreach and Partners Groupt. 202.458.4798f. 202.522.0316 migainquiry@worldbank.org

www.miga.org

WORLD BANK GROUPMultilateral Investment Guarantee Agency1818 H Street, NW Washington, DC 20433USA

Contact

promoting

foreign direct

investment into

developing countries

to improve people’s lives

and reduce poverty

W W W. M I G A . O R G