Raising debt and equity capital for infrastructure development and service provision has been a challenge for developing countries. Risk mitigation instruments facilitate the mobilization of commercial debt and equity capital by transferring risks that private financiers would not be able or willing to take to third-party official and private institutions that are capable of taking such risks. There has been increasing discussion on risk mitigation instruments in the context of infrastructure financing among developing country governments, multi- and bilateral donors, and the private sector. However, due to the complex nature of risk mitigation instruments, what they can and cannot offer and how they can best be utilized for infrastructure financing are not well understood. This report summarizes existing risk mitigation instruments and presents recent trends and developments that make these guarantee and insurance products valuable in securing financing for infrastructure projects in developing countries. Topics covered include: descriptions of different types of risk mitigation instruments; characteristics of multilateral, bilateral, and private providers of risk mitigation instruments and compatibility of instruments; recent developments and innovative applications of risk mitigation instruments through case transactions; and areas that challenge the use of risk mitigation instruments as catalysts of infrastructure development.