The European Bank for Reconstruction and Development (EBRD) and Nippon Export and Investment Insurance (NEXI) are seeking to strengthen their relationship and accelerate efforts to develop economies in regions where both organizations operate. In a memorandum of understanding (MoU), the two parties agreed to use their financial resources and expertise in projects that promote environmental protection.
NEXI is the official export credit agency of Japan and is wholly owned by the government. It conducts insurance business, covering risks in foreign transactions carried out by Japanese companies. The EBRD promotes the transition towards open market-oriented economies across countries in Central and Eastern Europe, North Africa and Central Asia, while providing financial assistance to private and entrepreneurial initiatives through investments and loans.
In July 2019 NEXI launched “Loan Insurance for Green Innovation” to support private-sector efforts toward environmental protection. The EBRD, through its Green Economy Transition approach, increased green financing to more than 40% of its annual investment last year, and to more than 50% by 2025.
The agreement was signed in an online ceremony by EBRD acting president Jurgen Rigterink and NEXI chairman and chief executive officer Atsuo Kuroda. It aims to establish a framework for cooperation between NEXI and EBRD and to help Japanese companies expanding overseas by creating new business opportunities for them in common regions of operations, while effectively combining EBRD's unique expertise as an international development bank and NEXI’s expertise in providing financial assistance to Japanese entities.
The MoU is in line with Japan’s Infrastructure System Export Strategy as it will encourage private investments into developing countries, and create an investment-friendly environment for Japanese companies.
In September NEXI also signed an MoU with the International Finance Corporation. IFC, a member of the World Bank Group, promotes sustainable private sector investment in developing countries. This agreement will enable co-operation between the two parties in supporting Japanese companies’ overseas business. NEXI will support such projects by providing insurance for project-related Japanese bank loans.