MSIG USA, the insurance arm of global insurer MS&AD Insurance Group Holdings, has announced its participation in an innovative investment structure with DEG, a KfW Group subsidiary.
Introduced by DEG during the Hamburg Sustainability Conference, this initiative leverages a $500 million fund to mobilise private capital for sustainable development projects in emerging and developing markets.
Under the arrangement, MSIG USA will provide credit insurance supporting the fund, helping 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 across developing markets.
Daniel Riordan, Head of Political Risk & Trade Credit and Surety at MSIG USA, said: “At MSIG USA, we believe insurance can be a catalyst for sustainable investment. This transaction demonstrates how specialty insurance solutions can help mobilize private capital, expand access to financing, and strengthen economic resilience across developing markets.
“It reflects our broader mission to contribute to the development of a more vibrant society and help secure a sound future for the earth, and we are proud to work alongside DEG and its partners on this important initiative.”
The fund is anticipated to back roughly 45 ventures in sectors such as infrastructure, corporate, project finance, and financial institutions. This novel framework increases DEG’s capacity to provide funding for sustainable initiatives throughout emerging and developing economies.
Monika Beck, Managing Director of DEG, commented: “DEG has been financing and advising private enterprises in developing and emerging-market countries for more than 60 years. Our mandate is to promote private sector investments with strong development impact. We therefore also mobilize additional capital via our fund advisory entity DEG Impact where it matters most.
“Today’s signing with MSIG USA and our partners is clear proof of concept: our portfolio-based guarantee structures can mobilize institutional investors into emerging and developing markets. We are very happy to foster this partnership between public and private actors, unlocking a new and broader level of impactful cooperation.”
