IMPACT OF MAJOR PROJECTS

ICIEC was approached by MUFG Securities EMEA plc to provide a Non-Honouring of Sovereign Financial Obligation (NHSFO) policy for its investment in the Yerkoy Kayseri Highspeed Railway Project, funded through a syndicated financing facility of USD 143.5 million, ensuring a secure financial foundation for this ambitious project.
Through this project, around 3,000 people are expected to be employed. This HSR route will allow for a direct rail connection between Yerköy and Kayseri, which will eventually connect Ankara and Kayseri with a travel time of only 2 hours by HSR. By developing a fast, safe, sustainable, and economical rail route, this project is set to boost economic activity in the Yozgat, Nevşehir, and Kayseri regions. This includes support for winter tourism, trade in and from Kayseri, and enhanced intercity job and growth opportunities through improved commuting services. This also marks a significant step in Türkiye’s green transition goals to decarbonize the Turkish transport sector and meet commitments to reduce greenhouse gas emissions following the COP26 climate conference and Türkiye’s accession to the Paris Agreement.

In a landmark collaboration between the African Development Bank (AfDB) Group and ICIEC, a strategic risk-sharing engagement has been established to drive sustainable development in Cote d’Ivoire. ICIEC, as a multilateral credit and political risk insurer, has provided an insurance capacity of EUR 194 million, supporting the EUR 400 million Partial Credit Guarantee (PCG) issued by the African Development Bank. This PCG serves as protection against non-payment risk associated with a EUR 533 million facility extended by Standard Chartered Bank to the government of Cote d’Ivoire. The funds are dedicated to a diverse array of eligible environmental and social projects, aligning with Cote d’Ivoire’s Sustainable Framework, encompassing areas such as renewable energy, education, pollution prevention, health infrastructure, and water management.
The partnership enhances Cote d’Ivoire’s capacity to attract long-term, competitive financing for ESG projects and highlights collaborative efforts among multilateral institutions to support common member countries’ sustainable development aspirations. The transaction not only facilitates the realization of Cote d’Ivoire’s National Development Plan but also improves the country’s funding terms under challenging market conditions. It sets a precedent for future cooperation between ICIEC and the African Development Bank in common member states.

ICIEC was approached by Société Générale (SocGen), managing the Special Purpose Entity (SPE), to provide insurance cover for the Non-Honouring of Sovereign Financial Obligation (NHSFO) by the government of Senegal ambitious infrastructure project involving the financing of the Dakar-Tivaouane highway, including the construction of 37 bridges. With a total volume of EUR 336 million and a tenor of 12 years, this project represents a significant step in enhancing the country’s infrastructure.
This coverage was pivotal for an Islamic financing facility amounting to EUR 300 million, plus associated profit, as part of a larger EUR 489 million contract. The project is part of an overarching EUR 1 billion initiative, supported by the World Bank, the African Development Bank (AfDB) Group, the Saudi Fund, and the Government of Senegal.
The Dakar-Tivaouane highway project, spanning 55 kilometers, alongside the expansion of the Route de Rufisque, also known as the “Ancienne Route de Rufisque,” are integral components of the trans-African routes, connecting key cities like Tangier, Nouakchott, Dakar, Lagos, Algiers, and plans to extend to Madrid, Spain. The highway will traverse through vital agricultural regions and play an essential role in the transportation of oil and gas, thereby boosting the economic development of Senegal.

In February 2023, ICIEC provided comprehensive insurance coverage for two refined petroleum transactions valued at USD39.4 million. These transactions were facilitated between two top-tier Pakistani banks and a UAE-based energy company, with the primary objective of enhancing Pakistan’s economy by ensuring the import of strategic energy supplies.

ICIEC’s insurance coverage safeguarded the transactions against potential risks and helped mitigate financial uncertainties and promote international trade.

ICIEC successfully concluded a transaction by providing Non-honoring of Sovereign Financial Obligation (NHSFO) cover as a co-insurer. This coverage was extended to mitigate the non-payment risk of the Government of Turkmenistan, acting through the State Bank for Foreign Economic Affairs of Turkmenistan (TFEB). The objective was to support the export of crucial spare parts from Japan to TurkmenEnergo (State Power Corporation) for the Zerger Gas-fired Power Plant in Turkmenistan.This landmark transaction marks the first collaboration under the ICIEC-NEXI arrangement, specifically covering advanced payments, as outlined in the Memorandum of Understanding (MOU) signed between the two parties.

ICIEC concluded a deal, valued at USD 78.8 million over a seven-year tenor, involving the insurance-covered export of advanced Hitachi mining equipment from Japan to Kazakhstan. This strategic intervention by ICIEC not only reinforced the robust mining sector of Kazakhstan but also marked a significant step in the enhancement of international trade and equipment export between Japan and Kazakhstan.

ICIEC provided a Risk Sharing of Foreign Investment Policy (RSFIP) for a landmark agricultural development project initiated in the West Bank, Palestine. . This initiative was primarily focused on the cultivation and international marketing of high-quality dates, specifically the Mejdool and Barhi varieties, through Nakheel Palestine for Agricultural Investment (Nakheel). The Nakheel project also has a crucial social inclusion dimension. It is considered a critical employer in a region hard hit by unemployment and poverty where most of the population makes a living from agricultural and dates cultivation sectors.