The proposed investment consists of a risk-sharing facility under which IFC would share with a member insurer of Zurich, a portion of the emerging market financial institution risk associated with medium-term trade transactions. Eligible transactions will be backed by bankers’ acceptances, letters of credit (L/C’s) and other standard trade facilitation instruments issued by the covered emerging market financial institution’s on behalf of importers in emerging markets. Under this facility, Zurich would issue a credit risk insurance policy covering the risk of an emerging market financial institution and IFC would cover a portion of this risk through a risk-sharing agreement with Zurich. The project's developmental impact lies primarily in supporting the recovery of emerging markets by providing additional access to term finance necessary to fund the import of capital goods and services. The limited access to this finance in emerging market economies is a key constraint to the ability of these countries to import the capital goods that they need to develop. IFC's participation in the project will help enable Zurich offer a new, much needed product that provides medium term risk coverage on emerging market financial institutions.