World Bank Group member issues $66m guarantees for car plant

The Multilateral Investment Guarantee Agency has issued guarantees worth $66 million

LAHORE: The Multilateral Investment Guarantee Agency (Miga), a member of the World Bank Group, has issued guarantees worth $66 million in support of the design, construction and operation of a vehicle assembly plant of Hyundai Nishat Motors in M3 Industrial City, Faisalabad.

The guarantees cover investments and loans extended by Sojitz Corporation of Japan, a trading company, to Hyundai Nishat Motors, which is a joint venture between South Korea’s Hyundai Motor and the Nishat Group, one of the largest conglomerates in Pakistan.

The guarantees, which are for 15 years, protect from the risk of restriction on transfer, acts of expropriation, war and civil disturbance.

After starting operation in 2020, the assembly plant will have annual production capacity of 30,000 vehicles. 

Published in The Express Tribune, August 17^th, 2018.

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