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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Unfunded Risk Participations
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Unfunded Risk Participation

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Unfunded risk participation is a financial arrangement where IFC assumes a specified portion of the credit risk associated with a loan or debt facility by a financial institution to a single borrower, or to a portfolio of pre-approved debt facilities, without providing upfront funding. In this arrangement IFC, as the Risk Participant, conducts its own due diligence on the credit quality of each underlying Borrower. 

Following a default or credit event (and typically the acceleration of the underlying loan), the Lender can request payment from IFC corresponding to the portion of the risk participation.  

By entering into an unfunded risk participation with IFC, the Lender therefore transfers a portion of its credit exposure to IFC and reduces its credit exposure and capital allocation (subject to local regulations); this allows the Lender to offer larger amounts of financing to projects with a higher risk profile. 

At the same time, by offering Unfunded Risk Participations, IFC can leverage its triple-A (AAA/Aaa) credit rating to facilitate financing and take exposure to relevant target segments while relying on the resources and expertise of a financial institution for the day-to-day management and funding of the underlying facilities. 

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