Non-Sovereign Guaranteed Operations (NSG)
Non-Sovereign Guaranteed operations (NSG) facilitate private sector investment in creditworthy and eligible projects which have a positive impact on development. The Bank’s private sector windows—Structured and Corporate Finance Department (SCF), the Multilateral Investment Fund (MIF), and the Opportunities for the Majority initiative (OMJ)—originate, assess, structure and negotiate lending and grants for private sector participation in sectors that are eligible under Bank policies—including infrastructure, capital markets and international trade finance. NSG operations are undertaken without government guarantees and government counter guarantees.
As a development Bank, when the IDB provides financing to either public or private companies and financial institutions, it seeks to ensure that it makes a positive contribution to the economic and social development in the region. In order to ensure the development effectiveness of its NSG operations, the IDB focuses on four key areas: development impact of projects; projects' consistency with the IDB Group's strategic objectives; value added by the IDB (additionality); and the IDB's operational effectiveness.
Based on these areas, the Structured and Corporate Finance Department SCF has been implementing a framework in order to focus on high developmental impact projects and to measure their performance throughout the project cycle. To know more about this, click here.