Equity
PROJECT FINANCE
Equity
Equity PRI can be provided for both Equity and Debt financing structures for a Project.
The coverage consists of:
- Nationalisation,
- Expropriation,
- Confiscation,
- Forced Abandonment,
- Forced Divestiture,
- Embargo,
- Export Licence cancellation,
- Operating Licence cancellation,
- Blockade,
- Selective Discrimination,
- Political Violence and War (including Civil War).
Equity PRI cover is available in almost every country not subject to Sanctions by any suprational body.
Premium Rates can differ largely from country to country
Equity PRI is a very useful risk-mitigant to listed Companies who are going into an emerging markert country for the first time.
The Meyseys team also has expertise in advising on First Loss Equity PRI for companies with exposure to 2 or more countries.
The maximum tenor for PRI available from the private insurance market is currently 15 years (with greater liquidity up to 10 years). CRI is usually provided for tenors of no more than 5 years, although some insurers may consider providing cover for 7 years or longer.
PRI is generally available for all countries provided they are not subject to sanctions (whether by the U.N., the U.S.A., the E.U. or the national government of the relevant insurer); insurance premiums will reflect the relevant sovereign risk, the tenor of the policy, the record of previous claims and recoveries in the relevant country, the nature of the underlying asset / project, and the current use of the insurer’s available country limits.
There are many insurance companies and Lloyds syndicates that underwrite PRI and CRI policies; those with a Standard & Poor's credit rating of A+ or better (or equivalent) are usually acceptable for policies with long tenors, and a rating of A may be acceptable for tenors of up to 3 years.
