ICIEC Newsletter

فبراير 2022

Message from the CEO

The global health crisis caused by the coronavirus pandemic has distracted much of the world from the already uphill battle to achieve the United Nations Sustainable Development Goals (SDGs). Pre-pandemic, the financing gap was estimated at USD 2.5 trillion. More recent estimates indicate that COVID-19 could have exacerbated this gap by another USD 1.7 trillion for developing countries. As many OIC nations move forward with longer-term initiatives for recovery, now is a critical time to ensure that these projects promote sustainability and contribute to the achievement of Agenda 2030.

With this, on behalf of the Corporation, I am pleased to introduce the quarterly newsletter for Q4 2021. This last issue of 2021 will highlight several projects with SDG contributions that ICIEC is supporting. This issue also includes four brand new insight articles, including a piece on the synergies of ICIEC’s partnerships for meeting the SDGs, and the central role of national ECAs in Integrated National Financing Frameworks of the UNDP. Other articles will highlight the power of credit and political risk insurance to mobilize the private capital towards meeting the SDGs and attempt to demystify ICIEC’s Preferred Creditor Status.

We hope that you find this content to be engaging and informative. If there’s anything you’d like to hear from ICIEC in future editions of the newsletter – let us know!

Sincerely,

Oussama Kaissi


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

الأخبار و الأحداث

On December 21st, ICIEC and IsDB signed a landmark Memorandum of Understanding with Nippon Export and Investment Insurance (NEXI), the Export Credit Agency of Japan, where they both expressed their willingness to strengthen and grow their current partnership.

أفكار

The Role of National ECAs in Integrated National Financing Frameworks

Better together: how partnerships create synergy for the SDGs

Demystifying ICIEC’s Preferred Creditor Status

The power of CPRI in mobilizing private capital towards the SDGs

أبرز المشاريع

ICIEC Covers AR Commodities Financing for Bank Muamalat Indonesia

ICIEC provides USD 5.4 million in coverage to the Bank Muamalat Indonesia to support export financing. The Corporation’s cover allows Bank Muamalat to increase its export financing capacity and help mitigate the financial risks for its exporters. ICIEC’s support for this funding is intended to encourage commodity exports from the member country, contributing to SDG 8 through generating economic growth and SDG 9 by fostering industrial exports.

ICIEC Increases Support for Import of Telecommunication Equipment to Uzbekistan

ICIEC provides an additional USD 13.8 million in cover to support foreign direct investment into Uzbekistan’s telecommunication sector. ICIEC has now insured a total of 3 separate purchase orders, totalling USD 44.2 million in cover, to support a Chinese Telecommunication Manufacturer seeking to expand operations in Uzbekistan, thereby improving Uzbekistan’s telecommunications infrastructure. The project enabled the expansion and modernization of an advanced telecommunication network and broadband access in Tashkent, Uzbekistan. The project also includes expanding the data storage and processing center and developing new technology to increase bandwidth over existing fiber networks. ICIEC’s involvement marks one of the Corporation’s most significant transactions in Uzbekistan, enabling the member state to facilitate growth in its telecom sector and aligning with the Government’s National Development Strategy for 2017-21. The project contributes to SDG 9: Industry, innovation, and infrastructure, and SDG 10: reduced inequalities.

Supporting the Expansion of Niger’s Diori Hamani International Airport

ICIEC has provided USD 30 million in coverage to Summa for their equity investment in the renovation and expansion of the Diori Hamani International Airport in Niger. ICIEC’s cover for this project is supporting the government of Niger’s strategic plan to upgrade the transport infrastructure and enhance the economic development of the country. ICIEC’s support for this funding contributed to SDG 9, industry, innovation, and infrastructure, as the project is funding the expansion of transport infrastructure in Niger.

Supporting Green Projects in Egypt

ICIEC has provided USD 56 million in cover to support the Sumitomo Mitsui Banking Corporation’s (SMBC) participation in the USD 3 billion Syndicated Green Term Loan arranged by Emirates NBD Capital Limited and First Abu Dhabi Bank PJSC in favor of the Ministry of Finance (MOF) of Egypt. Because Egypt is highly vulnerable to the impacts of climate change, climate adaptation projects aiming to increase resilience and adaptive capacities are highly vital to the country. Projects deemed eligibly “Green” are expected to have a significant positive impact on the environmental and social programs of Egypt. Plans for the Green Loan include funding the construction of seawater desalination plants with energy-efficient technologies to reduce water consumption and improve the efficiency of resources. In four Egyptian governorates, 1.2 million people expect to have access to better sanitation and sewerage upon completion of the Sanitation and Sewerage Infrastructure Project. These projects will not only support the creation of employment for many locals, but these projects are also likely to contribute to the achievement of the SDG 6, Clean Water and Sanitation as the projects include the building of infrastructure for transportation and treatment of wastewater.

Supporting the Mining Industry in Kazakhstan

ICIEC has provided a total cover of USD 7.6 million for the import of Hitachi excavators and other mining equipment to Aluminium of Kazakhstan (AoK). Kazakhstan has abundant mineral resources, including iron, coal, aluminum, gold, zinc, lead, manganese, uranium, bauxite, and chromite, among others. The mining sector’s share in exports is estimated to be around 16% and in GDP around 14%. The transactions were materialized under the scheme of “import of capital goods from non-member countries”. New excavators will allow AoK to replace the aging equipment and increase the volume of production, hence will generate more revenues. This transaction is in line with the SDG 9, which includes promoting the building of resilient infrastructure, and fostering innovation in developing countries.

ITFC Syndication Facility to the Government of Pakistan for the import of oil/petroleum products.

ICIEC plays an important role in facilitating the trade of essential commodities needed by member countries. As such, the Corporation has provided USD 75 million in cover to support the government of Pakistan’s needs aimed at reducing the nation’s exposure to volatile oil/commodity prices, increasing industrial production, and reducing power outages and idle time in the manufacturing industry. The project also will increase the reliability of the power/electricity supply for both domestic consumption and increase investor confidence and investment inflows, particularly with respect to the industrial sector.

Quota Share Treaty Agreement signed with KazakhExport

ICIEC signed a Quota Share Reinsurance Agreement with the State Export Credit Agency of Kazakhstan (KazakhExport). With the Agreement, ICIEC will provide reinsurance capacity to KazakhExport for its increasing number of export credit insurance transactions.