African Trade Insurance Agency (ATI), Nippon Export and Investment Insurance (NEXI) & Japanese banks pave the way for more Japanese investments into Africa

YOKOHAMA, JAPAN�- EQS - 30 August 2019 - On the side lines of the Tokyo International Conference of
Africa’s Development (TICAD7), ATI (http://www.ATI-ACA.org/) signed MoUs with
Japan’s three largest banks and Nippon Export and Investment Insurance (NEXI),
Japan’s export credit agency; ATI and NEXI announced at TICAD7 the launch of a
Japan Desk to be based in ATI’s Nairobi headquarters in order to provide
tailored risk-mitigation support to Japanese companies and investors; ATI has a
current pipeline of over US$1 Bn worth of transactions from Japanese banks.

 

The Tokyo International Conference of
Africa’s Development (TICAD7) concludes today. The event, which has grown into
one of the largest Africa-focused international events, provided a platform for
billions worth partnerships and transactions to be sealed. Among these newly
formed agreements, the African Trade Insurance Agency (ATI) and Nippon Export
and Investment Insurance (NEXI), Japan’s export credit agency, also announced
the launch of a Japan Desk, which will be housed by ATI in Nairobi. The two
institutions committed to strengthening risk mitigation cover to entice more
Japanese companies and investors to enter the African market. The Japan Desk
will facilitate this process.

 

ATI also penned agreements in the form
of MoUs with three of Japan’s leading banks –

 

Sumitomo Mitsui Banking Corporation
(SMBC) and Mizuho Bank. Mitsubishi UFJ Financial Group (MUFG) signed an earlier MoU with ATI. The
agreements signal to the world that Japan views Africa as a strategic
investment destination, which will also provide an opportunity for Japanese
companies and investors to more effectively capitalize on the current opportunities
in the fastest growing continent in the world.

 

In the last three years, ATI has
provided insurance to protect some of Japan’s largest lenders against the risk
of sovereign default on transactions that have collectively brought close to
US$1Bn to the continent. Some of this financing has helped countries to
reprofile short-term, and often pricey local currency debt, into longer-term
and more affordable structures. The financing has also supported a wide range
of priority sectors and, in the case of two ground-breaking capital markets
transactions arranged by Japan’s largest bank, ATI-backed financing has
facilitated the crowding-in of a new class of institutional investors to the
continent.

 

With a strong pipeline of transactions
valued at over US$1 Bn along with these strengthened partnerships, ATI expects
to support many more Japanese exporters and banks in deals across Africa in the
coming years.

 

Quotes:

 

Mr. John Lentaigne, Acting CEO, African Trade Insurance Agency:

Our participation at TICAD7 has yielded great results. We’re excited
about the prospect of providing greater levels of risk mitigation to Japanese
companies and financiers, which we see as key to unlocking even more Japanese
investments into Africa.

 

Mr. Atsuo Kuroda,
Chairman and CEO, Nippon Export and Investment Insurance (NEXI):

 

“Establishing the
cooperation framework between NEXI and ATI is one of the most fruitful outcome
which we have achieved during TICAD7. We are very pleased to announce that “Japan
Desk” will be set up in ATI, a reputable multilateral financial institution
which has a great track record to support African projects so that Japanese
companies can obtain easy access to the reliable risk mitigation solution
provided by ATI. As I promised in the TICAD7 official side-event, NEXI will
closely work with ATI to facilitate Japanese businesses in Africa.”

 

Mr. Christopher Marks, Managing Director, MUFG:

 

ATI has established itself as a
singular force for risk mitigation in Africa, leveraging the authority of its
supranational status to make possible highly efficient private-sector financing
for strategic development projects across the continent. ATI is an unequalled
partner for high order innovation in this space.

 

Mr. Hiroshi Nagamine, Managing Executive
Officer, Head of EMEA, Mizuho Bank, Ltd:

 

The signing of this MOU is an expression of
Mizuho’s strong will and desire to develop further our African business. Our
strategy in building our regional footprint is to work closely with undoubted
local parties. Counterparties that have excellent reputation, specialist
expertise, deep regional know how and experience.

ATI is an absolutely ideal partner given its
reputation both as a regional champion and also as an institution at the very
forefront of creating sophisticated funding solutions to meet the ever more
complex needs of entities doing business in Africa.

Signing this MOU will provide Mizuho better
flexibility; by availing ourselves to ATI’s sophisticated funding solutions, we
will be better able to support our clients in Africa.

Tetsuro Imaeda, Managing Executive Officer & Head
of EMEA Division, SMBC:

 

Cooperating with local financial
institutions in Africa is indispensable for us to expand our Africa business and
respond to customer needs.

 

By signing this MoU between one of
our most important partners in Africa, ATI, SMBC will be able to support our client’s
business to Africa through a wide range of coverage of ATI in the continent and
expects to further strengthen the existing strong relationship.

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