Institution details
NEXI - Nippon Export Investment Insurance (NEXI)
Key facts
- Established in 2017
- Ownership: Public
Part of the OECD
Part of the Berne Union
- Chiyoda First Building, East Wing 3rd Floor, 3-8-1, Nishi- Kanda, Chiyoda-ku
- +81 3 3512 7655
- https://www.nexi.go.jp
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | A+ |
Country rating | S&P | Local currency | A+ |
Products
- Supplier credit insurance
- Buyer credit insurance
- Overseas untied loan insurance
- Overseas investment insurance
- Investment and loan insurance for natural resources and energy
- Other products
Supplier credit insurance
- Covers losses incurred by a Japanese company undertaking export, intermediary trade, or provision of technical cooperation (e.g. construction work) due to a failure to ship or collect receivables
- Sub-products:
- SMEs and agriculture, forestry, and fisheries (AFF) receive cover losses incurred due to inability to collect receivables; simple application procedures and prompt payment of insurance claims are available to meet the needs of the SME and AFF users; in addition, the SME and AFF users can proceed with application for insurance contracts and the procedure to create a pledge for the right of insurance claims simultaneously
- Standing orders can be insured by setting an insurance claim payment limit to each buyer based on the estimated transaction value for the year with the buyer; this is for single and multi-buyer situation (including for continual and repeat sales to multiple buyers); simplified application procedures include instead of an insurance application for each export contract, only a once-a-month notification of all information on export contracts is required by the end of the next month once the insurance contract becomes effective
- Pre-payment import insurance: Covers losses incurred by a Japanese importer who paid for goods in advance in accordance with the contract terms but could not receive the goods on the due date and could not receive a refund for the prepaid money despite a request due to (i) war, revolution, prohibition of foreign currency exchange, suspension of remittance, or force majeure such as natural disasters or (ii) bankruptcy or delay in the performance of obligation by the counterparty - Cover:
- Pre-shipment coverage: 60–95% for political risk and 60–80% for commercial risk (under the Export Credit Specific Insurance)
- Post-shipment coverage: 97.5% for political risk and 90% for commercial risk (under the Export Credit Specific Insurance)
Buyer credit insurance
- Covers losses incurred by a financial institution located in Japan because of non-repayment of loans made to a foreign company or bank for payment of goods exported from Japan
- Cover: Up to 100% for political risk and 95% for commercial risk
Overseas untied loan insurance
- Covers losses incurred by a financial institution or company located in Japan because of non-repayment of loans made to a foreign company or government to be used as business funds
- Long-term business funds can be insured even if untied from Japanese exports
- Cover: Up to 100% for political risk and 90%–95% for commercial risk
Overseas investment insurance
- Covers overseas investment losses incurred due to expropriation or infringement of rights by a foreign government, restriction on foreign currency remittance, war, and other force majeure events
- Cover: Up to 100%
Investment and loan insurance for natural resources and energy
- Coverage for senior loans: Covers losses suffered by a Japanese company or bank that provides a foreign government or a company with long-term business funds (untied to exports from Japan) to be used for projects related to resource development
- Coverage for or investment and subordinated loans: Covers losses suffered by a Japanese company which has established a subsidiary or a joint venture in another country
Other products
- Trade insurance for standing orders from specific buyer
- Comprehensive export insurance with simplified procedure
- Export bill insurance
- Prepayment import insurance
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Insurance | Short/medium/long-term | Commercial | 60%-100% |
Insurance | Short/medium/long-term | Political | 60%-100% |
Performance highlights
What's new?
- NEXI signed and MOU with MIGA to establish a further cooperative framework between the two institutions on reinsurance contracts (in which either NEXI or MIGA provides reinsurance to the other party) by clarifying reinsurance procedures
- NEXI and EDC concluded a one-stop-shop reinsurance agreement; an earlier agreement covered short-term transactions—this new agreement added medium- and long-term transactions
- An MOU was signed by NEXI and EIB to smoothly support projects that will benefit Europe, Japan, and third countries in social and economic settings
- NEXI and Sinosure signed an MOU to establish a framework to promote trade and investment between the two countries, and to effectively support specific joint projects by enterprises from both sides, which will contribute to infrastructure improvement in target third countries
- NEXI and India’s ECGC signed an MOU to facilitate the exchange of information on cooperative projects between Japanese and Indian companies, or on joint projects for third countries by both countries’ companies
- NEXI signed an MOU with Australia’s Department of Foreign Affairs and Trade (DFAT) and the Australian ECA to collaboratively identify projects in the Indo-Pacific region where Japanese and Australian companies can work together, contributing to the export of high-quality infrastructure, as well as balancing between environmental conservation and economic growth
- Political risks covered: - Foreign exchange restriction/prohibition, import restriction/prohibition - War, civil strife, revolution, and acts of terrorism - Delays in foreign currency remittances caused in the paying country - High customs duties imposed due to economic sanctions - Economic sanctions by the UN or countries other than countries of destination - Expropriation - Natural disasters or other causes not attributable to contracting parties
- Commercial risks covered: - Non-payment by a counterparty to a contract for 3 months or longer (excluding cases where the exporter is responsible for the non-payment, such as cases of complaints against goods) - Bankruptcy of a counterparty to a contract - Unilateral cancellation of export contract with a foreign government before shipment (excluding unilateral cancellation before shipment by a private-sector buyer)
- Other covered risks: - Pre-shipment loss due to failure to ship - Post-shipment loss due to failure to collect receivables - Overseas investment loss as a result of discontinuation or suspension of a joint venture
- Environmental and social considerations requiring an insurance applicant for a project with a repayment period of 2 years or more is also required to submit a Screening Form; thereafter, adhere to category A, B, or C classification