Why Focus on Credit Enhancement?
The world needs about US$3.7 trillion worth of investment in infrastructure every year, according to the Global Infrastructure Hub. Despite the cumulative efforts of governments, development finance institutions, and the private sector, current spending on infrastructure still falls short by about US$600 billion annually. There is a pressing need for innovative solutions to de-risk projects in ways that increase credit quality, decrease default risk, and decrease financing costs for infrastructure projects. This brings value-for-money for governments, citizens, and investors alike.
Credit enhancement solutions improve the financial viability of infrastructure projects by transferring material infrastructure development and financing risks to credit-worthy third parties, such as Multilateral Developing Banks and pension funds, that are better placed to mitigate them.
The International Institute for Sustainable Development (IISD) undertook a global survey in 2018 to map out credit enhancement solutions available for infrastructure projects and identify barriers that prevent their more widespread use.
IISD and the MAVA Foundation developed two products informed by the global survey:
1. An online inventory on the growing range of credit enhancement instruments: https://www.iisd.org/credit-enhancement-instruments/
2. The paper entitled “Credit Enhancement for Sustainable Infrastructure”: https://www.iisd.org/library/credit-enhancement-sustainable-infrastructure
They invite you to join them for a webinar on credit enhancement solutions to explore trends and innovation in the market today.
09:00 – 09:10 CEST: Introduction to the IISD Online Instrument Inventory
- Laurin Wuenenberg: Researcher, Innovation at IISD
- Alexander Martin: Consultant, Credit Enhancement and Risk Mitigation at IISD
09:10 – 09:30 CEST: Key insights and discussion on the paper “Credit Enhancement for Sustainable Infrastructure”
- David Uzsoki: Senior Advisor, Sustainable Finance and Infrastructure at IISD IISD
9:30 – 10:00 CEST: A conversation on trends and current practice
- Boo Hock Khoo: Vice President of the Credit Guarantee and Investment Facility
- Lasitha Perera: Chief Executive Officer of GuarantCo
- Jef Vincent: Programme Officer, Renewable Energy Finance at the International Renewable Agency (to be confirmed)
10:00 – 10:30: A discussion on innovation in credit enhancement
- Boo Hock Khoo, Lasitha Perera, Jef Vincent
The webinar will be moderated by Oshani Perera, Director of the Public Procurement and Infrastructure Programme at IISD. The content is designed for a broad audience in the space of infrastructure planning, development, financing, and related policy making. Each presentation and discussion will be followed by a Q&A.