Guarantee will unlock additional funding to support crucial projects

WASHINGTON, October 25, 2024— Japan signed a $1 billion portfolio guarantee agreement Friday that will increase funding from the International Bank for Reconstruction and Development for projects addressing global challenges.

“Japan is leading the way in supporting new financial instruments that will make World Bank Group financing more widely accessible. By sharing risks, we can multiply our impact on development,” said World Bank Group President Ajay Banga who signed the agreement with Japan Finance Minister Katsunobu Kato.

The guarantee is part of a new leveraged portfolio guarantee platform that enables Japan’s $1 billion commitment to enable $6 billion in new financing over 10 years . The platform allows shareholders with high credit ratings to intervene if a borrower defaults on a loan from the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group.

Japan is joined by 14 other countries that have made commitments to new World Bank financial instruments, which also include hybrid capital. These commitments could potentially increase World Bank lending by more than $72 billion over 10 years.

Contacts:

In Washington: Sue Pleming, (202) 981-8929, [email protected]

David Young, (202) 473-4691, [email protected]

Website: www.worldbank.org/

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