Cairo, Egypt, 31 January 2024 – ICIEC signed a strategic risk sharing engagement with the African Development Bank (AfDB) aimed at fostering sustainable development in Côte d’Ivoire.

The AfDB is extending a Partial Credit Guarantee (PCG) to Standard Chartered Bank (SCB) for a loan to the Government of Côte d’Ivoire, aimed at financing projects under the country’s Environmental, Social, and Governance (ESG) Framework.

In this landmark collaboration, ICIEC provided a 12-year insurance capacity of EUR194 million, backstopping the EUR400 million Partial Credit Guarantee (PCG) issued by the African Development Bank against the non-payment risk associated with a facility of EUR533 million extended by Standard Chartered Bank (SCB), to the government of Côte d’Ivoire.

The facility will be used to finance a range of eligible environmental and social projects, including renewable energy, education, pollution prevention and control, terrestrial and aquatic biodiversity conservation, health infrastructure, as well as sustainable use of water and wastewater management, in accordance with Côte d’Ivoire’s Sustainable Framework.

The AfDB’s partnership with ICIEC is pivotal to scaling up the Bank’s partial credit guarantee scheme to attract the needed financing by Standard Chartered. The Bank will retain a stake of EUR206 million (51.5%) in the EUR400 million PCG, while ICIEC will cover the remaining EUR194 million. This arrangement not only optimizes the African Development Bank’s balance sheet by transferring a portion of the exposure to ICIEC, but also maintains a significant residual exposure, demonstrating a balanced risk-sharing approach.

The transaction marks a significant step by Côte d’Ivoire in enhancing its capacity to attract long-term, competitive financing dedicated to ESG projects. It is also a clear demonstration of the collaborative efforts of multilateral development institutions in supporting the sustainable development aspirations of their common member countries.

The projects selected by the ESG Committee and categorized under eligible social and green projects will correspond to various UN SDGs, which include social categorized and Green projects aligned to SDGs 1, 3, 4, 6, 7, 9, 10, 11, 13, 14 and 15.

Projects selected to be financed under SCB’s ESG loan include: i) Water and Sanitation: Drinking water supply to Abengourou and the surrounding town from the Comoé River (EUR38.7 million), ii) Affordable Housing through the provision ofg 12,000 social housing units (EUR15.2 million), iii) Healthcare infrastructure through the upgrading of health facilities (EUR15.7 million), iv) Renewable energy projects such as the Boundiali Solar Powerplant (EUR2.7 million), v) Conserving terrestrial and aquatic biodiversity through the Rural and Pastoral Land Management Support Project (EUR2.7 million). The above projects aim to support growth and sustainable development in Côte d’Ivoire, aligning with several UN Sustainable Development Goals (SDGs), particularly in areas such as renewable energy, affordable housing, water and sanitation, and health infrastructure.

Jeddah, Saudi Arabia, 8 May 2024 – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Shariah-based multilateral insurer and member of the Islamic Development Bank (IsDB) Group, successfully concluded the 2024 IsDB Group Annual Meetings, with the signing of 13 significant agreements and Memoranda of Understanding (MoUs) totaling USD689 million.

These commitments with 15 member countries and business partners span a broad spectrum of operations and projects across various sectors, further reinforcing ICIEC’s dedication to sustainable economic development. Under the theme “Cherishing our Past, Charting our Future: Originality, Solidarity, and Prosperity,” the meetings featured ICIEC’s active participation in the 2024 Private Sector Forum. This included ICIEC’s High-Level Panel Discussion that highlighted the transformative role of Saudi investments in fostering economic growth across ICIEC member states, in alignment with their national development agendas.

The event brought together stakeholders from government, international organizations, financial institutions, and the tech industry to discuss strategies for navigating emerging geopolitical risks and exploring new investment opportunities.

Key agreements during the meeting included Reinsurance Treaty arrangements with Indonesia Eximbank and the Export-Import Bank of Malaysia Berhad, MoUs with AZPROMO of Azerbaijan for investment promotion, and substantial credit insurance and financing arrangements with Societe Generale and Deutsche Bank to support infrastructure and healthcare projects in Senegal and Côte d’Ivoire, respectively.

Moreover, ICIEC has expanded its collaborations through new partnerships across various sectors. A cooperative framework with The Saudi Agricultural Development Fund (ADF) aims to enhance strategic initiatives, while a framework with the Federation of Contractors from Islamic Countries (FOCIC) focuses on knowledge sharing and capacity building within the insurance and contracting sectors.

Additionally, agreements with Huawei Technologies Co., Ltd. and ZTE Corporation are set to strengthen telecommunications infrastructure across member states, enhancing connectivity and access to modern technology.

The MoU with the National Infrastructure Fund of Saudi Arabia (INFRA) aims to align efforts to support infrastructure projects with developmental impact and foster institutional cooperation. Furthermore, a significant partnership with Joint Stock Commercial Bank “Agrobank” and Standard Chartered Bank explores a long-term financing partnership to bolster economic development in Uzbekistan through Islamic financing products. This is expected to yield EUR150 million in support of SMEs in Uzbekistan.

These initiatives not only reflect ICIEC’s strategic efforts to leverage Islamic finance for global development but also demonstrate a proactive approach to cultivating meaningful partnerships that supports the economic objectives of the Corporation’s member states.

Mr. Oussama Kaissi, the CEO of ICIEC, emphasized the significance of these collaborations: “This year’s Annual Meetings mark a defining moment for ICIEC as we celebrate three decades of dedicated service towards economic resilience and prosperity of our member states. The agreements signed here span a diverse array of sectors and are a testament to our commitment to leveraging Islamic finance to foster sustainable development. Our discussions at the Private Sector Forum have underscored the critical role of Saudi investments in propelling growth across our member states, exploring new horizons in emerging markets, and reinforcing our theme of cherishing our past while charting a prosperous future in a sustainable way.”

As ICIEC celebrates its 30th anniversary, its role as the only Shariah-based multilateral export credit and investment insurance provider continues to be crucial in facilitating over USD108 billion since inception in trade and investments, promoting growth, and development in its 49 member states.

The Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the multilateral Shariah-compliant insurer of the Islamic development Bank (IsDB Group), has extended a Non-Honouring of Financial Obligation by a State-Owned Enterprise (NHFO-SOE) policy to cover a EUR115 million Murabaha financing facility given by ING Bank to Turk Exim Bank to support the export finance needs of Turkish exporters.

The 5-year policy was issued on 11 June 2024 and covers 95% of the financing facility. ICIEC covers the risk that Turk Eximbank, a state-owned export credit agency (ECA), will fail to honour its financial obligations, ensuring payment protection for lenders against default.

According to the Corporation, it has extended its support to a significant financial initiative involving a EUR115 million facility from ING Bank to Turk Eximbank, with a tenor of five years.

“This strategic collaboration,” stressed ICIEC, “underscores ICIEC’s commitment to bolstering economic stability and growth within the region. The facility, facilitated by ICIEC’s comprehensive coverage, aims to enhance Turk Eximbank’s capacity to fulfil its financial obligations, thereby promoting trade and export activities. By mitigating risks associated with non-payment, ICIEC ensures that ING Bank is protected, fostering a secure and reliable financial environment.

“This project exemplifies ICIEC’s dedication to leveraging its insurance capabilities to facilitate impactful financial transactions, ultimately contributing to the broader economic development goals. The partnership between ICIEC, ING Bank, and Turk Eximbank highlights the importance of collaborative efforts in driving sustainable economic progress and strengthening international trade relations.”

ICIEC plays a pivotal role in the EUR115 million facility project from ING Bank to Turk Eximbank by providing comprehensive insurance coverage that mitigates financial risks and enhances the project’s viability. As a member of the IsDB Group, ICIEC’s involvement is instrumental in ensuring that the transaction aligns with international best practices and Shariah-compliant financing principles.

ICIEC’s primary role is to offer a NHFO-SOE policy, which guarantees repayment to ING Bank in case Turk Eximbank fails to meet its financial obligations. This risk mitigation encourages ING Bank to extend the loan, knowing that ICIEC’s backing significantly reduces the default risk.

Moreover, ICIEC’s support fosters confidence among international lenders, promoting a more favorable lending environment for Turkish enterprises. By covering the loan, ICIEC enhances Turk Eximbank’s ability to finance exporters, thereby stimulating trade and economic growth.

ICIEC’s role extends beyond risk coverage; it involves active engagement in due diligence, ensuring compliance with environmental and social standards and facilitating the smooth execution of the financial agreement.

This comprehensive involvement underscores ICIEC’s commitment to fostering sustainable economic development through strategic partnerships and risk management solutions.

Overall, ICIEC’s participation is crucial in mobilizing international finance for Türkiye’s export sector, thereby contributing to broader economic stability and growth. As such it aligns with the UN Sustainable Development Goal (SDG) 17 – ‘Partnerships for the Goals’.

The development impact of ICIEC’s cover and engagement is multifaceted, with significant implications for economic growth, trade enhancement, and financial stability.

By ensuring the facility’s security, ICIEC promotes increased trade financing, which is crucial for the expansion of Türkiye’s export sector. This, in turn, fosters economic diversification and reduces dependency on a limited range of export goods.

According to ICIEC, the expected key results of its engagement include:

• Increased Export Activities: Turk Eximbank’s enhanced financial capacity will enable it to extend more credit to exporters, thereby increasing export volumes and fostering trade relations with international markets.
• Economic Growth: The infusion of capital into the export sector is anticipated to stimulate economic activities, generate employment opportunities, and contribute to GDP growth.
• Financial Stability: By mitigating the risks associated with non-payment, ICIEC’s coverage enhances financial stability for ING Bank, encouraging further financing and investment in Türkiye.
• Capacity Building: Strengthening Turk Eximbank’s ability to meet financial obligations will build institutional capacity and improve its creditworthiness, leading to long-term benefits for Türkiye’s financial infrastructure.
• Regional Development: The positive ripple effects of increased trade and economic activities will likely contribute to regional development, reducing disparities and fostering inclusive growth.

Overall, this project is expected to significantly contribute to Türkiye’s economic resilience and sustainable development by leveraging international financial support and risk mitigation.

The Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the multilateral Shariah-compliant insurer of the Islamic development Bank (IsDB Group), extended a 10-year Non-Honouring of Financial Obligation by a State-Owned Enterprise (NHFO SOE) policy to cover a joint financing facility totaling EUR125 million extended by Deutsche Bank and ING Bank as part of EUR1 billion syndicated credit facility, which in turn is guaranteed by the International Bank for Reconstruction and Development (World Bank).

The 10-year policy was issued on 26 June 2024 and covers 95% of the financing facility. ICIEC covers the second loss risk for Deutsche Bank and ING Bank, protecting them against financial loss if Turk Eximbank, the Turkish state-owned export credit agency (ECA), defaults, after the first loss risk covered by IBRD, on the EUR1 billion syndicated loan. The facility provided by Deutsche Bank amounts to EUR73 million, while the ING Bank facility totals EUR52 million.

ICIEC is playing a crucial role in a high-impact financial arrangement involving a EUR1 billion syndicated credit facility granted to Turk Eximbank by a consortium of commercial banks, including Deutsche Bank and ING Bank. The project is strategically structured to optimize risk mitigation and to ensure robust financial support for Türkiye’s leading export credit agency. The transaction and the cover also align with the UN Sustainable Development Goal (SDG) 17 – ‘Partnerships for the Goals’.

In this innovative deal, ICIEC covers the second loss risk, providing a vital safety net for Deutsche Bank and ING Bank. The IBRD covers the first loss risk, ensuring a layered risk-sharing mechanism that enhances the loan’s attractiveness to commercial lenders. This structure significantly reduces the financial exposure for participating banks, encouraging their involvement in substantial funding efforts.

Turk Eximbank, benefiting from this syndicated loan, is poised to expand its capacity to finance Turkish exporters, fostering increased trade activities and economic growth. The comprehensive risk coverage provided by ICIEC ensures that the financial obligations of Turk Eximbank are met, even in adverse scenarios, thereby promoting confidence among international lenders. “This project underscores the collaborative efforts of ICIEC, IBRD, and commercial banks in driving sustainable economic development. By facilitating significant financial inflows into Türkiye’s export sector, the project is expected to stimulate job creation, enhance export competitiveness, and contribute to the overall economic resilience of the country,” said the Corporation.

ICIEC plays a pivotal role in the EUR1 billion syndicated loan project for Turk Eximbank by providing crucial second loss risk coverage for Deutsche Bank and ING Bank. This involvement is part of a strategic risk-sharing mechanism designed to enhance the appeal of the loan for commercial lenders. By covering the second loss, the Corporation ensures that any financial losses beyond the first loss, which is covered by the IBRD, are mitigated.

This layered risk protection structure significantly lowers the financial exposure for participating banks, encouraging their participation in the syndication. Its role extends beyond risk coverage; it involves rigorous due diligence, adherence to Shariah-compliant financing principles, and active engagement in structuring the deal to ensure it meets international standards. By providing this coverage, ICIEC instills confidence among international lenders, facilitating the mobilization of substantial financial resources for Turk Eximbank.

Furthermore, ICIEC’s involvement enhances Turk Eximbank’s ability to support Turkish exporters by providing the necessary financial backing. This, in turn, promotes trade activities and economic growth within the region. The comprehensive risk mitigation provided by ICIEC ensures that Turk Eximbank can meet its financial obligations, even under challenging circumstances, thereby maintaining financial stability and fostering a secure lending environment.

Overall, ICIEC’s strategic participation in this project underscores its commitment to fostering sustainable economic development through innovative risk management solutions and international financial collaboration.

The development impact of ICIEC’s involvement in the EUR1 billion syndicated loan for Turk Eximbank is substantial, with far-reaching implications for Türkiye’s economic landscape. This strategic financial initiative is expected to catalyze significant growth in the export sector, contributing to broader economic stability and development.

The Development Impact and Key Expected Results Include:

• Trade Enhancement: By providing financial backing to Turk Eximbank, the project will enable increased support for Turkish exporters. This is expected to boost export activities, diversify export markets, and enhance Türkiye’s global trade position.
• Economic Growth: The infusion of substantial financial resources will stimulate economic activities, leading to increased production, job creation, and overall economic growth. The enhanced export capacity will contribute significantly to Türkiye’s GDP.
• Financial Stability: The risk mitigation provided by ICIEC and IBRD ensures financial stability for the participating banks, fostering a more secure and attractive lending environment. This stability is crucial for sustaining long-term economic growth.
• Increased Export Financing: Turk Eximbank’s enhanced capacity to finance exporters will result in higher export volumes, contributing to economic diversification and resilience.
• Job Creation: The project is expected to generate employment opportunities across various sectors, particularly in manufacturing and trade, thereby reducing unemployment and improving livelihoods.
• Institutional Capacity Building: The involvement of ICIEC and IBRD in risk mitigation will strengthen Turk Eximbank’s institutional capacity and creditworthiness, leading to improved financial infrastructure and governance.
• Regional Development: The economic benefits of increased trade and employment will extend to regional areas, promoting inclusive growth and reducing economic disparities.
• International Confidence Building: The successful implementation of this syndicated loan project will enhance confidence among international investors and lenders, potentially attracting further investments into Türkiye’s economy.

Overall, the project is poised to create a robust and positive impact on Türkiye’s economic development by leveraging international financial support, fostering trade, and ensuring financial stability through strategic risk management.

ICIEC Extends BMP Cover for Europe Credit Bank’s EUR50 million Line of Financing to Microcredit Bank Finance in Support of Uzbek SME Exports

The Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the multilateral Shariah compliant insurer of the Islamic development Bank (IsDB Group), extended a Specific Transaction Policy (STP) to The Republic of Azerbaijan earlier this year to cover the Non-Honoring of the Guarantor following Non-Payment by the Buyer for equipment supplied by a major Chinese Telecommunications Supplier.

According to ICIEC, this is one of the most significant transactions it has conducted in Azerbaijan in favour of a prominent Chinese telecommunication supplier in February 2024 for a USD12 million limit involving the Radio Access Network (RAN) Modernization Project to the first B2B (Business-to-Business) company operating in Azerbaijan’s dynamically developing ICT and high technologies sectors. The policy covers 90% of the risk exposure for a period of 3.5 years. This is ICIEC’s first issuance of a Medium-Term Insurance Policy in Azerbaijan.

Modernization has always been vital to meet user experience and business targets. Azerbaijan’s telecommunication company’s decision on the RAN modernization has become increasingly relevant to executing energy cost reductions and achieving Net Zero targets. The private sector-led project contributes to the country’s strategic goals of reducing Azerbaijan’s dependence on oil and gas income and straightening its resilience to external shocks through investment in physical infrastructure.

ICIEC’s issuance of a groundbreaking transaction in Azerbaijan, involving a USD12 million limit for the RAN Modernization Project, is a strategic move. This transaction, with the most prominent Chinese telecommunication supplier, marks ICIEC’s first step in supporting Azerbaijan’s dynamically developing ICT and high technologies sectors. The focus on hardware equipment modernization underscores the strategic importance of this investment in the evolution of the communication service providers’ (CSPs) network plans.

The Corporation’s issuance of a Specific Transaction Policy to cover the Non-Honoring of the Guarantor following Non-Payment by the Buyer for 3.5 years is a significant intervention. This transaction, one of the first by ICIEC in Azerbaijan, which acceded to ICIEC Membership in 2023, sets the stage for long-term benefits. It paves the way for future transactions that will further strengthen Azerbaijan’s ICT sector.

The transaction which targets the vital Telecom sector holistically is in alignment with several of the UN SDG Agenda including GOAL 4: Quality Education, GOAL 8: Decent Work and Economic Growth, GOAL 9: Industry, Innovation and Infrastructure, GOAL 10: Reduced Inequalities, GOAL 11: Sustainable Cities and Communities, GOAL 13: Climate Action, GOAL 15: Life on Land, and GOAL 17: Partnerships for the Goals.

Modernization, a key to meeting user experience and business targets, is now more critical than ever. The decision of Azerbaijan’s telecommunication company on the RAN modernization is a testament to this. It is increasingly relevant to executing energy cost reductions and achieving Net Zero targets. This private sector-led project clearly demonstrates the power of collaboration in achieving the country’s strategic goals of reducing dependence on oil and gas income and strengthening resilience to external shocks through investment in physical infrastructure.

The Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the multilateral Shariah compliant insurer of the Islamic Development Bank (IsDB Group), has extended a Bank Master Policy (BMP) to cover the non-payment risk of JSCB Microcredit Bank in Uzbekistan due to Commercial and Political Risks in the central Asian member state and region.

The EUR50 million conventional line of financing was extended by Europe Credit Bank to support Uzbekistan’s Small-and-Medium-Sized Enterprises (SME) Assistance Programme. ICIEC’s 1-policy, which took effect earlier this year, covers 90% of the risk exposure for 3 years. SMEs are key players in driving economic growth, providing employment opportunities, and fostering innovation, which are essential components of the UN SDG Agenda. ICIEC’s cover and engagement, says the Corporation, can have material developmental impacts on Uzbekistan’s economy and society.

These include:

• New Job Creation.
• Contribution to economic diversification by operating in various sectors.
• Promoting export growth while contributing to foreign exchange earnings for the country.
• Contribution to social stability by reducing income inequality, providing opportunities for marginalized groups, and promoting social cohesion