Hyundai Nishat has received $66 million worth of guarantees by Multilateral Investment Guarantee Agency. MIGA is basically a member of the World Bank Group. With the goal to support the assembly plant of Hyundai Nishat, MIGA has given $66 million worth of guarantees.
Presently Hyundai Nishat assembly plant is under construction in Faisalabad, M3 Industrial City. With the guarantee given by MIGA, Hyundai Nishat will have financial help in the construction, design, and operation of their assembly plant. The plant will be completed in two years time and once it is completed it will manufacture 30,000 units per annum.
For the manufacturing, selling and retailing of Hyundai cars in Pakistan, Nishat Group of Companies collaborated with the Japanese conglomerate Sojitz Corporation. Whereas technical assistance will be provided by the South Korean company Hyundai.
The assembly plant of Hyundai Nishat Motor Private Limited (HNMPL) is being constructed under the Greenfield investment program. Once it is established, Hyundai Nishat Motors will locally produce its vehicles and develop sales and after-sales network service all over Pakistan. The project will not just boost the auto sector in Pakistan but it will also give a boost to the economy of the country and create job opportunities. Also, customers won’t have to import the Hyundai cars once they will be locally available in the country.
As for MIGA, it is a financial institution that gives guarantees in form of political risk insurance to help investors against political or economic risks. Investors can protect their foreign direct investment with the help of the guarantees given by MIGA.