MSIG USA and Mitsui Sumitomo Insurance Company, Limited (MSI Japan) – collectively referred to as MSIG – have partnered with the International Finance Corporation (IFC), a member of the World Bank Group, for 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.
This credit insurance policy forms part of IFC’s Managed Co-Lending Portfolio Program (MCPP), a platform designed to leverage the private-sector capacity for development finance.
This structure is designed to transfer a portion of the credit risk to the insurance market, which in turn enhances the IFC’s capital efficiency
This mobilisation of private capital enables the IFC to increase its lending capacity, thereby improving access to credit for small and medium-sized enterprises and other growth-oriented sectors in markets where long-term financing is often limited.
“At MSIG USA, our Political Risk and Trade Credit expertise is grounded in MS&AD’s broader mission to contribute to a more vibrant society,” said Daniel Riordan, Head of Political Risk and Trade Credit at MSIG USA. “With A+ Class XV financial strength and experience working seamlessly across regions, we are proud to enable financial resilience and economic development in emerging markets with partners like IFC.”
“We are honoured to participate in this program through a collaboration with MSIG USA and excited to contribute to the sustainable development of the global environment and society,” said Junichiro Mizukami, Managing Executive Officer at MSI Japan.
This $6 billion credit insurance policy is one of the largest credit insurance programs arranged by a multilateral development institution to date and represents IFC’s latest execution under the MCPP framework.
It will support up to $10 billion in new IFC lending to commercial banks and other institutions.
Moreover, it marks MSIG’s first participation in an IFC MCPP Credit insurance facility, leveraging its global underwriting platform and expertise in complex, cross-border credit exposures, which aligns closely with IFC’s risk frameworks and builds on MSIG’s long engagement in structured risk transfer.
“This credit insurance facility shows how private insurers can unlock larger investments and enable more lending to small and medium-sized businesses in emerging markets,” said Kevin Njiraini, Director of Syndicated Loans and Mobilization at IFC. “We thank MSIG for their partnership in delivering this facility, which mobilizes insurers’ underwriting capacity to drive growth and create jobs.”
