World Bank Group

12/12/2024 | Press release | Distributed by Public on 12/10/2024 18:17

GIF Seminar “Addressing Exchange Rate Risk in Infrastructure Projects in EMDEs”

The Global Infrastructure Facility (GIF), a G20 initiative, is a global public-private collaboration platform that advises governments in the preparation of sustainable, quality infrastructure projects for private investment in developing countries and emerging markets. GIF enables collective action among a wide range of partners - including donors, multilateral development banks, country governments, with inputs of private sector investors and financiers - to leverage resources and expertise and find solutions to build bankable pipelines of infrastructure projects that attract private financing.

As part of the GIF's overarching commitment to bring bankable, quality, and sustainable infrastructure projects to market, knowledge also plays a key role. In this context, GIF and the International Monetary Fund (IMF) have partnered to prepare the report on "Addressing Exchange Rate Risk in Infrastructure Projects in EMDEs" as part of the G20 Infrastructure Working Group under Brazil's Presidency.

Infrastructure investment is crucial for sustainable development and economic growth, especially in Emerging Markets and Developing Economies (EMDEs). However, these countries face significant challenges, including fiscal constraints and foreign exchange (FX) risks, which hinder their ability to attract private capital for infrastructure projects. FX risk, caused by mismatches between local revenue and hard currency financing, remains a key obstacle.

The report provides country-specific strategies to manage FX risk at both macroeconomic and project levels through a strategic framework of reducing FX risk as much as possible through e.g. local currency finance from local capital markets and mitigating the remaining risk through risk mitigation mechanisms and innovative financial solutions.

At this seminar, Astrid Manroth, GIF Head, and João Sabino, Senior Infrastructure Finance Specialist will present key findings from the report and examples of GIF-supported investment opportunities for private investors. This online seminar will be held in English and Japanese with interpretation.

Speakers:

Astrid Manroth
Head, Global Infrastructure Facility (GIF) 

João Sabino
Senior Infrastructure Finance Specialist, Global Infrastructure Facility (GIF)  

Registration:

To participate, please register by online form posted on this webpage. Please send your questions to the speaker by online form.