Banks - African Trade Insurance Agency

Energy Solutions

Banks

Risk Protection for Banks

Renewable energy projects in ATI member states give lenders opportunity while positively impacting the host country. With African Trade Insurance Agency’s protection, banks can confidently lend into renewable energy projects for Africa.

ATI insures direct loans to the utilities, as well as loans to Independent Power Producers (IPPs), Energy Performance Certificate (EPC) contractors, and suppliers. Our cover makes your facility investment-grade and provides capital relief. We also help you to shed risks and continue to pursue opportunities in markets where you have reached maximum capacity, so that you don’t have to sell-down or syndicate your loans.

Our policy wording is generally accepted to be Basel compliant, and we work with other insurance partners that are investment-grade. We have a flexible approach and can help you with the onboarding process with your credit team.

We work closely with banks and lenders to mitigate the following risks:

Public Utility Risks

The power off-taker and the manager of the transmission lines are key partners in any energy project. ATI’s Breach of Contract Insurance protects you against the failure of the utility to meet its contractual obligations, such as non-payment or unilateral changes in the Power Purchase Agreement (PPA). By removing one of the key perceived risks, we help to make the project bankable.

Meanwhile, lenders typically require cash collateral before financing the project that will ensure the Independent Power Producers (IPP) can continue to operate in the event of off-taker default. We have a solution to address this need.

Learn more about ATI’s Liquidity Support

Political Risks

Unexpected issues can arise in emerging African markets, and it’s worth being prepared. ATI’s Political Risk Insurance mitigates against events such as expropriation of assets, currency inconvertibility, trade embargoes and more.

Learn more about our Political Risk Insurance

Non-Payment Risks

Lenders to energy projects in ATI member countries can insure against non-payment or delayed payment, including cross-border transactions. Banks can increase their rights by becoming loss payee or co-insurer when they finance suppliers to energy projects. ATI is on the ground and can add a local perspective to your credit assessment.

Learn more about our Trade Credit Insurance

Performance Risks

ATI protects issuers of bonds by providing reinsurance and counter guarantees. We can significantly reduce potential losses by providing a security with a known value and maturity date.

Learn more about our Surety Bonds and Counter-Guarantees

Political Violence, Terrorism, and Sabotage Risks

The possibility of politically motivated violence, terrorism, or sabotage shouldn’t prevent you from lending to African energy projects. These risks are infrequent, but have a high impact. ATI’s Political Violence, Terrorism, and Sabotage Insurance protects your client against damage to physical assets and loss of income due to business interruption and thus enables them to continue to service their debt.

Learn more about our Political Violence, Terrorism, and Sabotage Insurance

Enable the growth of renewable energy in Africa – talk to us about how to finance Africa’s renewable energy projects with confidence.

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