The Multilateral Investment Guarantee Agency (Miga) issued US$2.7bn in political risk insurance for projects in developing countries in the fiscal year ending June 30, 2012.

The agency has also announced a record US$10.3bn of gross exposure to these countries for the same period. Its investment guarantees were used on 52 projects in developing countries.

Miga’s executive vice-president Izumi Kobayashi says: “Investors are seeking new markets as growth in traditional markets continues to stagnate. This year’s high demand for our political risk insurance stems from investors’ caution as they enter more frontier markets in an environment of generally increased risk perception.

“In these uncertain times, Miga’s guarantees are helping developing countries secure private investment in critical infrastructure and other job-creating enterprises.”

Infrastructure investments accounted for 58% of the agency’s new volume this year, including projects in Albania, Côte d’Ivoire, Ghana, Kenya, Pakistan, Panama, Rwanda, Tunisia, and Senegal.

“We’re pleased that we supported a number of transformational infrastructure projects in developing countries across regions, while half of the investments we supported this year are in the world’s poorest countries, including some emerging from conflict. This is where Miga can add the most value — insuring investments in environments where risk perceptions remain high,” concludes Kobayashi.

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