Credit risk cover for political or credit risk from Coface

Ibrahim Kurubally, Coface South Africa, marketing and communications manager.

Coface, the international credit insurer, is providing customised cover for credit and political risk to address the increasing challenges of international business.

Single Risk Unistrat is aimed at international transactions in an ever-changing and often unpredictable environment, focusing on, but not limited to the Energy, Transport Infrastructure, Telecommunications, Water Treatment, Construction and Public Works, Services and Commodities sectors.

Coface’s Single Risk Unistrat will cover contract interruption and unfair calling of bonds. This includes bid bonds, advanced payment bonds, performance bonds and retention money bonds.

The policy includes non-delivery of products or termination of supply contracts if there is no financial compensation. The contract protects businesses with local, foreign, private or public suppliers.

“If you invest abroad, your assets are exposed to particular risks, including confiscation, expropriation, nationalisation, deprivation, operating losses and forced abandonment. Coface covers these risks as well as material damage caused by a strikes, riots, civil uprising, an act of terrorism or even war. In addition, the risk of non-transfer of dividends following political or administrative measures is also covered,” said Ibrahim Kurubally, Coface South Africa, marketing and communications manager.

Unistrat has been extended to non-payment of loans, confirmation letters of credit, discounting without recourse, pre-financing and project financing.