Mosaic increases political risk capacity to $30m

Support for green-energy infrastructure in developing economies

Mosaic Insurance has expanded its political risk capacity to $30m and extended its support of sustainable finance for green-energy infrastructure in developing economies.

The specialty insurer said the moves underscore its emphasis on sustainable finance in the sector, particularly around green-energy projects that assist emerging nations hard hit by post-pandemic economic and geo-political shocks.

Mosaic has strengthened capacity from $15m to $30m per political risk, using both its Lloyd’s syndicate 1609 and trade-partner capital through its syndicated management programme. Mosaic said it has also lengthened the tenor, or term provisions, of loan coverage from ten to 15 years for political-risk insureds such as multilateral and state-owned development banks.

“This is an essential step allowing us to match the market’s appetite for longer-tenor projects and sustainable finance around meaningful infrastructure schemes,” said Finn McGuirk, Mosaic’s head of political risk. “We’re seeing an increase in these types of loans using blended finance tools and innovative products like ‘blue bonds’ that generate funding for marine ecosystems – it’s a win-win for low-income countries and supports their long-term economic stability.”

Natalya Tyson – VP, underwriter, political risk, at Mosaic – added: “In recent years, the world economy has suffered successive crises – from rising interest rates and food insecurity to deglobalisation. Developing countries have been impacted disproportionately as their debt levels rise, making it harder to invest in recovery. We’re pleased to support projects behind institutions committed to affordable, long-term green finance, and we take pride in working with our valued clients in this sphere.”

“Renewable-energy infrastructure can require longer financing support behind multilaterals, typically on a semi-concessional basis, provided at below-market interest rates,” said Tyson. “But the longer timeframe is more affordable and helps re-align low-income nations’ debt profiles to make the burden more manageable.”


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