Nairobi, 25 November 2021– The African Trade Insurance Agency (ATI) has signed on to Euler Hermes’ Green2Green Single Risk solution, a product that contributes to tackling climate change by insuring green transactions and reinvesting the premium in certified green bonds enabling an entirely green value chain in compliance with EU taxonomy. The solution focuses on transactions that qualify for cover based on a “bespoke environmental evaluation in renewable energies, energy efficiency, recycling, water treatment and mass public transportation.”
As part of the Green2Green Single Risk solution, ATI has subsequently received a green certificate from Euler Hermes, for the role it played in developing water supply infrastructure in an African state. The green certificate will amplify and promote the role that multilateral institutions like ATI play in helping to address the global climate change crisis. It will also facilitate financing of projects in renewable energies and other eco-friendly sectors.
ATI provided insurance support for the expansion and improvement of water supply infrastructure in an African state, expected to have overall positive environmental and social impacts, by improving the health and environmental conditions of the beneficiaries, thus contributing to addressing climate change.
ATI has an increased focus on its environmental, social and governance (ESG) impact with the recent hire of an ESG officer, and is actively working on ways to optimize its ESG impacts to more effectively support its African member states. ATI currently has a portfolio of projects estimated at US$282 million and has developed an in-house ESG framework for assessing the risks it underwrites, which has been ratified by its key partner institutions such as the European Investment Bank (EIB) and the German Development Bank (KfW).
Moreover, ATI has a strong institutional focus on supporting its member countries’ transition to the green economy. Thanks to the support of the German government through KfW, ATI launched the Regional Liquidity Support Facility (RLSF) to offer short-term liquidity support to renewable energy projects from 50-100 MW in Sub-Saharan Africa ultimately addressing climate change. Additionally, the Africa Energy Guarantee Facility (AEGF), a risk-sharing platform launched in partnership with the EIB, KfW and Munich Re – provides up to US$1 billion in reinsurance capacity for sustainable energy projects and requires that projects supported be in line with IFC and EU standards.
Quote from Benjamin Mugisha, CUO at ATI
It is clear that organisations cannot afford to sacrifice ESG factors in the pursuit of economic growth and business profitability and the insurance industry has a major role to play by providing sustainable insurance products. At ATI, we strongly believe in the added value of the consideration of ESG risks to ensure that the projects contribute to UN’s SDGs. We are happy and proud to receive the green certificate that reinforces this commitment.
Quote from Christophe White, Head of Transactional Cover at Euler Hermes
Building a sustainable solution is now a strong consideration when new projects are developed and Euler Hermes aims to encourage financial institutions and multilaterals to make this a top priority. Our green certificates reward key players which benefit from our Green2Green Single Risk solution by reinvesting all investable premium back into the green economy, creating a green cycle. This means environmentally sound projects fund more green initiatives, creating more momentum in the ESG space and tackling climate change together.
Press Release 2021/2511/Nairobi
Press Contact:
Sheila Ongas
Communications Officer
African Trade Insurance Agency
Mobile +254 728 600 180
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About The African Trade Insurance Agency
ATI was founded in 2001 by the African States to cover the trade and investment risks of companies doing business in Africa. ATI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. In 2020, ATI closed the year with a gross exposure of US$6.3 billion and a net profit of US$39.4 million, owing to strong demand for ATI’s insurance solutions from the international financial sector and from African governments. Since its inception, ATI has supported US$66 billion worth of investments and trade into Africa. For over a decade, ATI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATI obtained an A3/Stable rating from Moody’s.
About Euler Hermes
Euler Hermes is the world’s leading provider of trade-related insurance solutions, helping companies of all sizes trade with confidence at home and abroad. In January 2020, Euler Hermes became the first credit insurer to include ESG risks in our country ratings to help companies reveal potential blind spots in their investments. Euler Hermes is a member of Allianz. www.eulerhermes.com
