Hosted by: Marsh: Reconsidering the Cost and Benefits of Political Risk Insurance for FDI: a catalyst for energy investments
17 Mar 2022
In project finance, Political Risk Insurance (PRI) is a well-known and oft-used tool for foreign direct investors, yet its perceived value has been limited to qualitative notions of protecting the project against possible future losses. Join us to review the results of ground-breaking research by S&P Global, commissioned by Marsh Credit Specialties, to financially quantify the benefits of PRI. The study’s conclusions, recently published in a jointly authored white paper, reveal how PRI has immediate tangible benefits of reducing the country risk premium used in valuations and increasing the IRR of insured projects. This has implications for investors’ evaluations of investment opportunities, selection of projects in which to invest, fund raising for institutions, exit strategies for investors, and discussions with lenders – all casting a new light on PRI as a tool to catalyse investment in emerging market energy projects. All this and more to be covered by our panel comprised of practitioners from Marsh, S&P Global, Chubb and Norton Rose Fulbright. Hope to see you there!