MIGA’s Post

Today, the World Bank Group launched a single platform that unifies 20 guarantee products, revolutionizing risk management for private investors in emerging markets. This streamlined approach not only simplifies solutions but also introduces innovative guarantees to tackle global challenges like poverty, climate change, and food insecurity. By mobilizing private capital, the World Bank Group aims to scale the guarantee business to $20 billion or more by 2030. This is a major step towards a more sustainable and equitable future for all. #WorldBank #MIGA #guarantee #emergingmarkets #investment #poverty #climatechange #foodsecurity

Beyond safeguards and striving for a real change in how we interact with our planet. The methodology for identifying and tracking finance supporting nature is out! This is the outcome of a cross-World Bank collaboration spanning a range of IBRD/IDA sectors and practices, and IFC and MIGA. https://lnkd.in/ejQAE_an

The World Bank is uniquely positioned to work accross the public and private sector #developmentfinance. Working closely, IFC & MIGA can help promote an enabling environment for private sector action on global challenges. Read more in our assessment➡️ bit.ly/MOPAN_WB #MOPANonWB 

The World Bank Bank and other multilateral banks have $1.2 trillion in callable capital from their shareholder governments but are not making use of it. NADEL's Chris Humphrey leads a workshop on the sidelines of the World Bank IMF Annual Meetings in Marrakech on 11 October to explore how this unique financial guarantee can open up more development finance to face global challenges. Read more about Chris' project on callable capital ➡️ https://lnkd.in/emGPKxzV #development #finance #EconomicJustice #WBmeetings

The World Bank Group (WBG) launched the guarantee platform yesterday, consolidating all guarantee products and experts from across the World Bank Group institutions (World Bank and IFC - International Finance Corporation) at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform will provide three types of coverage: credit guarantees for loans to the public or private sector, trade finance guarantees for trade finance projects involving public entities, and political risk insurance against non-commercial risks for private sector projects or public-private partnerships. It aims to boost WBG annual guarantee issuance to $20 billion by 2030. Read more> https://lnkd.in/evPnzTH4 #Guarantees

A new Q1 publication in Borsa Istanbul Review: 'The influence of foreign direct investment on banking stability in a dual banking system during the COVID-19 pandemic and the global financial crisis". Special thanks to my coauthors. https://lnkd.in/dQwvsCpP

The African Development Bank (AfDB) sold its hybrid capital note in January this year. We learn that #TheWorldBank is looking to issue up to $1 billion in a hybrid note on capital markets this year. This is the first time that a multilateral lenders come to the market with hybrid bonds. Just to precise, hybrid debt is subordinated to senior one. It is usually called debt like equity instrument as it mixes the features of both. Why to do so? Innovate and increase funding sources for emerging countries, also for sustainable development projects. https://lnkd.in/d5ZNQE5S

In response to the G20’s calls for Multilateral Development Banks (MDBs) to become better, bolder, and bigger, I’m pleased to share that the Asian Development Bank (ADB) has published a new Report on Callable Capital that provides, for the first time, greater clarity and transparency on the value of this instrument. Callable capital is capital that is subscribed to by shareholders that has not been paid-in. Unique to MDBs, it's a commitment from each shareholder to step in with additional capital, but only under extreme circumstances to avoid defaulting on bond or guarantee obligations. Although it’s never been used by any MDB before, the big takeaway is that ADB’s shareholders have expressed their readiness to respond positively to a call, if the need arises. The analysis sheds light on the robustness of ADB's financial framework and will help rating agencies to better assess the value of callable capital to MDBs. This is part of our ongoing efforts to free up more funding maintaining our top-notch AAA credit rating. I am incredibly proud of ADB's team for pushing the envelope to make this happen and thank Board Members for their great support. Read the Report https://lnkd.in/dd_7T_Tc News release https://lnkd.in/dQftBHJQ David Le Brun, Luca Di Mario, Nicholas McBride

I had a great time being a part of the panel during this webinar. Just in case you missed it, the link below will take you to the recorded session to catch the insights I provided. https://lnkd.in/d5w6Nydm

🔍 Did you know? The ESM's inter-institutional cooperation extends throughout its various operations. The ESM is part of the IFI Treasury and Risk Systems group, a close-knit group of peer financial institutions who get together twice a year to discuss industry changes and common approaches to business needs, as well as to share best practices Last week, the ESM hosted the group in hybrid format with participants from African Development Bank Group, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), CEB - Council of Europe Development Bank, EBRD, European Central Bank, European Investment Bank (EIB), IFC - International Finance Corporation, New Development Bank (NDB), Nordic Investment Bank, and The World Bank. Some key takeaways: 🔹 Credit-adjusted trade and collateral valuation require well-managed processes and systems. Managing market data from multiple providers adds extra complexity. 🔹 The number of different integrated systems should be kept to a minimum. Adding more systems creates more complexity, cost, and increases time to market. 🔹 Providing excellent support and adapting the systems to market changes (LIBOR reform, EMIR Refit, ISO20022, new instrument needs) is a must for the front office of the institution to manage liquidity in a constantly changing environment. Many thanks to all participants for their contributions. Look forward to seeing you again soon! #ESMeuro