RIV: Investment Insurance Facility
Investing abroad, especially in developing countries and emerging markets, brings various risks which are outside the control of the investor.
The "Investment Insurance Facility" (RIV) is created by the Dutch government to stimulate Dutch investments abroad by the insurance of political risks. The scheme is open to new investments in which there must be a clear Dutch commitment and a lasting interest in the foreign company.
The scheme is applicable to a wide group of countries with preferably an investment protection agreement between the Netherlands and the investment country.
This facility is implemented on behalf of the Dutch government by Atradius Dutch State Business.
Coverage and maturity
Damage caused by war, expropriation and restrictions on remittance can be insured as a total package and separately. The war coverage also provides protection for damages resulting from civil war and terrorism, while under expropriation also discriminatory government action is defined.
In the case of equity participation, the book value of the investment is insured, while in case of loans, the loan amount and guarantees, the guarantee amount is insured. In addition, up to 12% per year for dividends and interest is covered.
The term of the insurance is maximum 20 years, 15 years from the moment of completion of the investment, while the insurance may be terminated by the investor after 3 years.
Costs and premiums
The handling costs of an application amount 0.1% of the investment, with a minimum of € 450 and a maximum of € 4.500. If the application is successful, the investment is insured for a period of 12 months without additional costs. If the application is not accepted, you will receive back half of the application costs.
The premium depends on the country of investment and varies for the risks of war, expropriation and restrictions on remittance between 0.65% and 1.1% per year. When issuing the policy, the premium for the entire term is fixed and charged annually based on the value of the investment.
The main features are:
- Both investments in and loans to the foreign company can be insured. The investments should have a minimum investment period of 3 years, while a loan must have a minimum term of 4 years to be eligible for insurance.
- The investment by the Dutch investor may be in the form of equity participation, cash, goods and in kind to a maximum of € 100 million.
- Also, loans from European banks, finance institutions of Dutch companies and multilateral institutions can be insured up to € 75 million. Finance corporations owned by foreign companies are excluded.
- Investments have to comply with Corporate Social Responsibility (CSR) standards.
Please contact us for more information and support.