Coverage of a Multilateral Development Bank's Country Exposure (MIGA-15429)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Uninformed
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 12, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Inter-American Development Bank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 21, 2024

Disclosed by Bank Oct 18, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

PROJECT DESCRIPTION

This summary covers an application made by the Inter-American Development Bank (IDB) to MIGA for coverage of one of its loans which is guaranteed by the Federative Republic of Brazil. MIGA's coverage is a guarantee of Non-Honoring of Sovereign Financial Obligations to a Multilateral Development Bank (NHSFO-MDB) for up to US$100 million and a tenor of up to 11 years.

In September 2023, MIGA's Board of Directors approved the new NHSFO-MDB program. This cover enables Multilateral Development Banks to manage country limits and concentration and be a supportive factor in the rating assessment of MDBs, thereby supporting their strategy to lend more. The transaction contemplated is a pilot in this program.

IDB's Board of Governors approved a new institutional strategy for 2024-2030, to increase the impact and scale of the IDB Group's work in the Latin American and Caribbean region. The IDB Group aims to double its current outstanding loan portfolio and enable this growth by unlocking US$50 billion via balance sheet optimization. The strategy integrates key elements from the G20 Capital Adequacy Frameworks review for multilateral development banks, notably resource mobilization that generates greater leverage.

ENVIRONMENTAL CATEGORIZATION

This NHSFO-MDB cover is intended to help MDBs manage country concentration on their balance sheet, and as such, MIGA's Sustainability Policy and related categorization do not apply. IDB loans are processed perIDB E&S policies, which includeenvironmental and social risk categorization and disclosure.

DEVELOPMENT IMPACT

The executed loan under the MIGA guarantee was assessed for development impact by the IDB at the time of its implementation and has been monitored by the IDB to date. As a leading MDB in the Latin American and Caribbean region, the IDB institutional strategy is closely aligned with that of the World Bank Group.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

WORLD BANK

 

ACCESS TO INFORMATION
To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at:  https://www.worldbank.org/en/access-to-information/request-submission.

 

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

 

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint.

How it works

How it works