ICIEC Newsletter

May 2022

Message from the CEO

Welcome to this spring edition of the ICIEC Newsletter.

This is the time of year that our markets embrace and reflect on the recent messages of Ramadan, which encourages renewal, rejuvenation, and recovery. Never has this message been more important. Early promise of a post-pandemic recovery in the Islamic world, notwithstanding current global geopolitical turmoil, is turning into a bounce back in certain areas. While IMF forecasts for global growth are not as buoyant as they were, it is incumbent on us to share our vision of supporting sustainable growth and exports.

This means we need to pay particular attention to the themes of building back better and more sustainably with a view to achieving the UN’s Sustainable Development Goals and to look at the twin ambitions of regeneration and sustainability in growth and how ICIEC can, and is, supporting these. The global pandemic and the geopolitical crisis are leading to supply-shock related inflation in many of our economies. Nonetheless, there are plenty of opportunities for sustainable growth through partnerships with the private sector.

ICIEC is helping export credit agencies and banks support sustainable growth in Sub Sahara Africa with projects that benefit local communities. In a special feature, we highlight the importance of our guarantees and how to build on the partnership model to help the region grow in a way that doesn’t overburden sovereign debt.

We showcase the moves to set up Pakistan’s EXIM Bank, and its mission to support export growth through diversification, with an interview with its CEO, Irfan Bukhari. We also look at the development of the private CPRI market in OIC countries and beyond and feature a case study of a green loan deal to help sustainable development in Egypt.

I’d also like to introduce you to members of our excellent team at ICIEC with a new feature. In this edition, we focus on the head of our Turkey office and the work she is doing there to support renewal and recovery.

Don’t hesitate to let us know if there are features, you’d like us to address in future issues of the ICIEC newsletter.

I hope to see many of you in Sharm el-Sheikh, Egypt, on June 2-4 where ICIEC will assembling two high-level parallel events to discuss climate action and digital transformation at the IsDB Group Private Sector Forum.

Sincerely,

Oussama Kaissi

CEO of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)

News & Events

On March 27, 2022. Cairo, Egypt. A landmark Arab Africa Guarantee Fund (AAGF) took a step closer to realisation when ICIEC submitted a final concept note for approval for the establishment of the Fund to the 3rd Board of Governors Meeting of the Arab Africa Trade Bridges (AATB) Program on March 14 in Cairo.

AAGF will provide a scalable structure that aims to mobilise financial resources and risk mitigation capacity to support trade and investment in Arab and African countries; and ensure that all-in pricing of transactions is optimised for the end beneficiaries through blended structures.

Read more here

On March 14, 2022. Cairo, Egypt. ICIEC and the African Export-Import Bank (Afreximbank) signed a Memorandum of Understanding (MoU) to advance the two institutions’ relationship and thereby promote trade and investment flows between Arab and African countries. The MoU was signed by Mr Oussama Kaissi, Chief Executive Officer of ICIEC, and Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. The MoU creates the framework for a range of collaborative initiatives and programmes to partner on activities such as risk sharing arrangements, joint business development initiatives, fund mobilisation, information exchanges and capacity building. In addition, the MoU enables ICIEC to access Afreximbank’s digital platforms to enhance Arab-African trade.

Read more here

On February 21, 2022. Jeddah and Madrid. ICIEC signed a landmark Reinsurance Agreement (RA) with Spain’s Export Credit Agency CESCE (Compania Espanola de Seguros de Creditito a la Exportacion, SA, Compania de Seguros y Reaseguros SME. The RA was signed by Mr Oussama Kaissi, Chief Executive Officer of ICIEC and Ms Beatriz Reguero Naredo, Chief Operating Officer, State Account Business, CESCE, in a virtual ceremony on February 18. Under the RA, ICIEC will provide Shariah-compliant reinsurance solutions covering CESCE’s exposure in ICIEC member countries originating from transactions by Spanish companies/banks.

Read more here

On January 16, 2022. The Islamic Development Bank Group (IsDB Group) Private Sector Entities – ICIEC, the Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC) in collaboration with IsDB Group Business Forum (THIQAH) and Annual Investment Meeting (AIM) organised a Trade and Investment event at the Egyptian Pavilion, Expo 2020 in Dubai – UAE on January 11, 2022 under the theme: ‘Strengthening trade and investment in OIC member countries.’

Read more here

Insights

On the road to lift off with Pakistan’s new EXIM Bank

Supporting sustainable growth in Sub Sahara Africa

The development of the private CPRI market in MENA

ICIEC in Five

Project Highlights

ICIEC provides $20 million insurance cover for Turkmenistan to import key transportation equipment from Japan

ICIEC provided US$20 million insurance cover to ING Bank (Tokyo Branch) for a financing facility to Turkmenistan to buy Toyota taxis, buses and minibuses supplied by Sumitomo Corporation. They will be used for intra and intercity transportation in Ashgabat and throughout Turkmenistan and will help ease congestion. The seven year insurance cover to mitigate non-payment risk comes under ICIEC’s Non-Honouring of Sovereign Financial Obligations Policy. The extended financing facility to the Government of Turkmenistan is through the State Bank for Foreign Economic Affairs (TFEB).

ICIEC provides $40 million non-payment risk cover for Turkmenistan to import vital agricultural machinery from Japan

ICIEC provided US$ 40 million insurance cover to ING Bank (Tokyo Branch) for a financing facility to Turkmenistan for the purchase of Komatsu machinery from Japan for the development of the country’s agriculture sector. The seven yer insurance cover to mitigate non-payment risk comes under ICIEC’s Non-Honouring of Sovereign Financial Obligations Policy. The extended financing facility to the Government of Turkmenistan is through the State Bank for Foreign Economic Affairs (TFEB).

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