covid-19

ICIEC COVID-19

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Message From CEO

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Message From CEO

ICIEC and IsDB Response

Learn about the IsDB Group’s ‘Strategic Preparedness and Response Program’ and ICIEC’s contribution to sustaining trade and investment during the crisis.

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Our Solutions

Offering products for financial institutions, ECA’s and business, we are the only Shariah compliant multilateral insurance provider of credit risk insurance and reinsurance. Learn more about how our products and solutions support trade and investment.

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Demonstrating our impact

ICIEC is more committed than ever to implementing strategies that empower strategic and sustainable development. Learn more and see examples of our development impact.

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Resources for more information

Knowledge is power. Learn about how IsDB partners and others are responding to the crisis.

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Official Message from the CEO on COVID-19

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ICIEC Response Fact Sheet

IsDB Group fully recognizes the limited ability and capacity of its Member Countries to cope with the adverse impacts of COVID-19 and assures them of the Group’s full and unwavering support to get through the crisis together and build back for a better tomorrow.

ICIEC has developed partnership initiatives with IsDB Group Entities to better serve Member Countries and support their recovery from the negative impact of COVID-19. To do so,

 ICIEC is providing credit and political risk insurance to:

Sustain imports of strategic commodities.

Protect investments.

Minimize volatility.

Responding as a member of IsDB Group

The IsDB COVID-19 Response “3 Rs”:

IsDB has established a response plan to cover 3 phases of recovery for the short-term, medium-term, and long-term.

R1

Respond: Deliver immediate action through South-South and North-South reverse linkage operations focused on a) strengthening health systems to provide care to the infected; b) building production capacity of testing kits and vaccines; and c) building Pandemic Preparedness capacity in cooperation with G20 Global Initiative.

R2

Restore: Deliver medium term action through financing for trade and SMEs to sustain activity in core strategic value chains, and to ensure continuity of the necessary supplies mainly to the health and food sectors, and for other essential commodities.

R3

Restart: Deliver long-term action to build resilient economies on solid foundations and catalyze private investment by supporting economic recovery and countercyclical spending, with a targeted US $10 billion that aims to unlock $1 trillion USD worth of investments.

US $280 million
for sovereign projects and programs

US $605 million
for trade finance

US $1,414 million
for insurance coverage

US $250 million
for private sector projects finance

Support has been extended in the form of:

Grants

Concessional financing

Trade finance

Private sector financing

Political and credit risk insurance coverage

The IsDB Group has deployed all available financing instruments to channel the funds in a fast track manner to support member countries.

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The program supports:
  • Strengthening of health systems.
  • Funding of national epidemic preparedness and response plans.
  • Community awareness and education.
  • Disease surveillance.
  • Data collection and analysis.
  • Sustained provision of essential social services.
  • Provision of social safety nets.
  • Sustaining private sector activity.
ICIEC has actively contributed to the implementation of SPRP in cooperation with IsDB Group peers and succeeded in supporting Member States’ efforts combatting the pandemic with a total to date of USD 1,414 million in approved transactions. ICIEC’s cover is facilitating the import of emergency goods and necessities into Member States, such as medical equipment, food, wheat, milk powder, crude oil, and gas. In addition, ICIEC is providing insurance cover for critical infrastructure projects to support COVID-19 relief efforts, such as the construction of regional hospitals.

The COVID-19 Guarantee Facility

To encourage trade and investment during the COVID-19 pandemic, ICIEC and IsDB jointly launched the COVID-19 Guarantee Facility (CGF), an innovative program to support the financing of trade. The CGF also supports SMEs to sustain activity in core strategic value chains and ensure the continuity of necessary supplies, mainly to the health and food sectors, including vaccine procurement.

The CGF acts as a source of private capital funding through attracting additional participants to the IsDB funding structure. With ICIEC being the Guarantee Facility agent, the CGF will provide insurance protection against non-repayment events in line with the appetite of external partners through the issuance of adapted versions of the ICIEC Non-Honoring of Sovereign Financial Obligation (NHSFO) policies. The facility has been implemented by the two entities to support COVID-19 hit industries in the OIC Member States and to attract cross-border financing from international Banks in Member States.

The ICIEC-ISFD COVID-19 Emergency Response Initiative (ICERI)

ICIEC and the Islamic Solidarity Fund for Development (ISFD), have collaborated to create the ICIEC-ISFD COVID-19 Emergency Response Initiative (ICERI) program, a rapid COVID-19 response that employs an innovative financial structure, providing more confidence to suppliers, investors, and financiers of COVID-19 related transactions and extends some relief to the Member Countries on their borrowing costs. The mechanism involves a grant of USD 5 million provided by ISFD which ICIEC has been using as a subsidy for the premium charged to the Member States or as a first-loss cushion.

The program can mobilize up to USD 400 million for the procurement of urgent product needs:

  1. Medical equipment, pharmaceutical products and other related items that are needed for the fight against the COVID-19. Including but not limited to, protective gear, testing kits, sanitizers, ventilators etc.
  2. Essential commodity items, including essential food supplies and energy commodities

To date, USD 824 million worth of trade transactions has been supported by the ICERI program in the food and other essential commodities sectors, using only USD 1 million of the subsidies funded by ISFD. This reflects a leveraging of more than 150 times.

IsDB Group Vaccine Facility

As part of IsDB Group’s as part of SPRP 2.0, ICIEC is contributing to the IsDB Group Vaccine Initiative (IVAC), supporting Member Countries in accessing the COVID-19 vaccine. For it’s part, ICIEC is providing risk mitigation solutions to international financial institutions through its Credit and Political Risk Insurance products, facilitating additional resource mobilization from the international market.

ICIEC is offering its services throughout all the four phases of the vaccine facility:

  1. Development
  2. Manufacturing
  3. Procurement
  4. Vaccine Delivery

Afreximbank-AVATT vaccine transactions have been considered under the CGF and ICERI program for a number of ICIEC Member Countries. IsDB has expressed interest in collaborating with ICIEC to guarantee Afreximbank’s financing against the risk of Non-Honoring of Sovereign Obligations (NHSO) by Member Countries. The initial amount of this transaction is approximately USD 106 million, subject to final country allocation.

ICIEC is also considering USD 134 million in reinsurance support to Afreximbank under the AVATT initiative to facilitate the acquisition of COVID-19 vaccines to 12 common Member Countries in Africa.

Further ICIEC Response Efforts

Memorandums of Understanding:
ICIEC has signed several Memorandums of Understanding (MoU) with Export Credit Agencies ECAs throughout the pandemic. These partnerships facilitate flexible yet strong agreements for risk sharing in the form of reinsurance or co-insurance, supporting both parties to increase their risk appetite for trade transactions and investments. Through the expanded trade coverage supported by these partnerships, firms in member countries can access new markets, grow in existing markets, and in the process generate employment and economic growth.

During the pandemic, ICIEC signed MoUs with the following partner institutions:

Webinars:

ICIEC has engaged in webinars with key partners to roll out COVID-19 response measures and funding, discuss the impact of COVID-19 on IsDB member countries, and make plans for the continued support of those in need.

The IsDB Group Private Sector Action Response to COVID-19: discussing the challenges facing the Private Sector and Global Economy during the COVID-19 outbreak. The IsDB Group Private Sector entities also presented an immediate joint action response and the outlook to combat the COVID-19 pandemic, whilst incorporating the new reality.

Impact of COVID-19 on the Insurance of Investment and Export Credit for Strengthening Intra-OIC Trade and Investment: hosted jointly by ICIEC and the Islamic Centre for Development of Trade (ICDT) to discuss the role and experiences of insurance and export credit agencies (ECAs) in OIC states, as well as the insurance sector response to the COVID-19 pandemic. The webinar highlighted the importance of the investment and export credit insurance sector in covering risks for countries, local companies, and international trade partnerships.

Introducing AATB’s Investment Pillar to Financial Institutions and Partners: Building Investment Bridges Between Arab and African Countries: under the umbrella of the Arab-Africa Trade Bridge (AATB) program, ICIEC, the Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Development of the Private Sector (ICD), in collaboration with the IsDB Group Business Forum hosted this event to discuss key investment, trade and insurance pillars designed to improve trade between Arab and African countries. The webinar also showcased potential business opportunities for Arab and African countries in key industries, while discussing projects and activities involving the growth of trade in the two regions.

The Role of Credit and Political Risk Insurance in Resource Mobilization in the Post-COVID-19 Era: Leading up to the IsDB Group’s Annual Meeting for 2021, ICIEC hosted this online event for more than 300 participants worldwide. The webinar discussed the ongoing economic impact of the pandemic across Member Countries and how PRI, in combination with key industry players, can support the recovery of global trade and investment

The Role of ICIEC in attracting PPP Investments in the Post-Covid-19 Era: Held during the IsDB Group Annual Meeting 2021, held in Tashkent Uzbekistan, ICIEC held this high-level panel discussion to showcase how ICIEC supports sustainable PPP projects and to shed the light on the role of Governments, MDBs, ECAs, and Private Sector Business Partners by identifying the linkages and drivers of investment and trade.

Project Highlights

ICIEC has contributed to a number of projects that have promoted the “3 R” action plan, enabling countries to combat COVID-19, construct and sustain healthcare facilities, maintain the flow of goods, and secure investments for continued growth.

ICIEC Insurance Expands Côte d’Ivoire Health Sector

Thanks to ICIEC’s cover of EUR 124 million for a Deutsche Bank investment, the people of ICIEC member Côte d’Ivoire will have greater access to hospitals and healthcare services. Two new hospitals with a collective capacity of 400 beds will be built in the south-eastern towns of Adzope and Aboisso, bringing state of the art equipment and facilities to this underserved region. The two hospitals will employ around 600 local people and foster the development of a micro-economy in the areas surrounding them. Additionally, the project will finance five new medical units in existing hospitals across the country. The project EPC will be conducted by a Moroccan contractor, supporting the export of services from another ICIEC member country and facilitating intra-OIC trade of services and human capital between Cote d’Ivoire and Morocco. The support from ICIEC will help Côte d’Ivoire achieve its National Development Plan targets for 2016-2020 while also improving the Republic’s ability to contain the COVID-19 pandemic.

ICIEC Extends Coverage for the Purchase of High-end Medical Equipment to Hospitals in Punjab, Pakistan

ICIEC recently extended USD 2.3 million, the extent of the Corporation’s line limit, in non-payment insurance to support the supply and installation of state-of-the-art CT scan equipment to District Headquarters hospitals in Punjab, Pakistan. This project will greatly assist the Pakistani healthcare sector in fighting the COVID-19 pandemic by providing doctors with a more cost effective and accurate method for diagnosing patients. The project was funded as part of an ongoing program with the Government of Punjab to improve the lack of essential medical diagnostic equipment in the province. ICIEC’s involvement in the transaction also directly supports the Punjab Health Reforms Roadmap, initiated in April 2014, to improve the quality of healthcare facilities in Pakistan’s most populous province.

ICIEC Cover Enables the Construction and Rehabilitation of Schools in Côte d’Ivoire

ICIEC has provided EUR 20 million in Non-Honoring of Sovereign Financial Obligation cover against the non-payment of a loan facility provided to the Government of Côte d’Ivoire. ICIEC’s cover enables the government to move forward with the renovation of the Scientific High School of Yamoussoukro in addition to advancing the construction of 22 new classrooms. The project is part of a general social program that the Government of Côte d’Ivoire is implementing. The program aims to mitigate poverty and illiteracy by enabling as many children as possible to have access to quality education.

ICIEC provides cover for financing of essential imports to Nigeria in response to COVID-19

ICIEC has provided USD 12.5 million in cover, issuing the Corporation’s first ever BMP Murabaha to BMCE Bank of Africa Morocco in support of its financing for a Nigerian bank. ICIEC’s support allowed for the urgent financing to secure essential imports of food and refined oil to Nigeria, helping to offset the social and economic distress caused by the COVID-19 pandemic. ICIEC has played a crucial role in facilitating trade flow and reinforcing trust, directly supporting banks and private sector resilience through the crisis.

ICIEC support provides essential commodities to the Government of Egypt

ICIEC has provided USD 16 million under a Documentary Credit Insurance Policy to French international bank, Société Générale, for the importation of essential commodities to Egypt. ICIEC’s contribution is essential as the facility was allocated in response to the Government of Egypt’s call to the international market for a more secure and steady supply of strategic commodities to help Egypt in the fight against the economic and social impact of COVID-19.

ICIEC covers SMBC financing to Egyptian Ministry of Finance

ICIEC provided USD 135 million in NHSO policy for Sumitomo Mitsui Banking Corporation’s (SMBC) London Branch, covering its participation in the first international syndicated bank financing facility for the Ministry of Finance of the Arab Republic of Egypt, worth USD 1.5 billion. The facility, which saw the participation of 12 regional and international financial institutions, was signed in August 2020 and will strongly contribute to the additional financial resources required for the Government plan regarding the needed action against the social and economic impacts of the COVID-19 pandemic and as approved earlier this year by the Government of Egypt. The transaction will also serve SDG 8 by contributing to the promotion of inclusive and sustainable growth, employment and decent work.

Securing essential imports of wheat to enhance food security in Bangladesh

ICIEC is supplying USD 17.1 million in coverage under ICERI to one of the leading private commercial banks in Bangladesh, the State Bank of India (SBI). The transaction serves to directly respond to the challenges posed by the COVID-19 pandemic by supporting the importation of vital wheat imports into the country at subsidized cost, enhancing food security for the citizens of Bangladesh. This transaction directly contributes to the achievement of SDG 2: Zero hunger in ICIEC’s member country.

ICIEC insurance supports financing for Senegal’s urgent strategic commodities

ICIEC has recently extended USD 9 million in LC confirmation insurance to BMCE Bank of Africa Morocco through ICERI, in order to secure urgent imports of strategic commodities to Senegal. The COVID-19 pandemic, combined with flooding, has caused a serious supply chain disturbance and economic distress in the country. ICERI has eased the financial burden on the transaction by structuring a concessional all-in pricing mechanism, helping Senegal to preserve the flow of essential imports.

ICIEC covers ITFC syndication transaction for Kuwait Finance House

As part of ICERI, ICIEC recently extended USD 30 million in cover for a Bank Master Policy with Kuwait Finance House. The financing is being used by Egypt’s Ministry of Finance to import crude oil and refined petroleum. The transaction is part of an open syndication with ICIEC’s IsDB Group sister entity, ITFC, and is working to ease the financial burden on the Egypt and mitigate the challenges posed by the pandemic.

ICIEC coverage through ICERI supports essential energy imports to Tunisia

Under ICERI, ICIEC has recently provided USD 19 million in Bank Master Policy coverage to BMCE Bank of Africa Morocco, allowing their participation in an ITFC syndication facility. The coverage supports the import of fossil fuels to Tunisia’s state-owned electricity production, transport and distribution centre, Société Tunisienne de l’Electricite et du Gaz (STEG). This transaction is assisting the mitigation of the COVID-19 implications by ensuring Tunisian citizens have sufficient access to energy.

Rehabilitation of a wastewater collector in Dakar, Senegal

ICIEC is providing EUR 50 million in guarantee cover as part of a EUR 126 million facility to Société Générale. The facility is being used to rehabilitate the Hann-Famm wastewater collector in Dakar, Senegal which was built more than 70 years ago and is an advanced stage of degradation. The collector provides approximately 8 km of evacuation and treatment of wastewater, covering more than 10 districts of the city. The rehabilitation will significantly improve the city’s wastewater security, enhancing resilience against sanitation-related health issues for the population, especially during flood season. A more effective wastewater collector will also increase the attractiveness of the city of Dakar for foreign direct investment.

ICIEC insurance supports access to energy in Tunisia

ICIEC provided USD 4.75 million toward a Bank Master Policy, allowing European based bank, CHAABI, to participate in a syndication led by ITFC. ICIEC’s cover for CHAABI is supporting the annual import of gas products to Société Tunisienne de l’Electricite et du Gaz (STEG), Tunisia’s state-owned electricity production, transport and distribution centre. This transaction is essential as it is enabling access to energy for Tunisian citizens. The coverage was provided through ICERI

Supporting imports of essential commodities to Pakistan

ICIEC has provided USD 50 million in coverage under the Bank Master Policy to the Arab Investment Company for the importation of essential commodities, such as crude oil, refined products, and liquified natural gas. The commodities are critical to Pakistan’s residential, commercial and industrial sectors for diverse purposes, including heating, cooking, generating electricity and manufacturing a wide variety of products.

In this difficult time, our solutions are here to support you
 
Banks and Financial Institutions

Credit Insurance SolutionsBank Master Policy (BMP)ICIEC will provide your financial institution with the confidence and ability to offer Islamic financing for exports with up to 90% of potential losses covered. Documentary Credit Insurance Policy (DCIP) ICIEC will help you protect your balance sheet against non-payment of Letters of Credit, ensuring your institution can safely and securely grow its Letter of Credit confirmation business.

Investment Insurance Solutions

Non-Honouring of Sovereign Financial Obligations (NHSO)In these unprecedented times, we offer the protection you need from country risk.
Foreign Investment Insurance Policy (FIIP) for Financing FacilityFeel safe financing projects abroad and attract additional project capital in the process as our FIIP helps you mitigate against country risk.

 
Corporates

Credit Insurance Solutions

Comprehensive Short-Term Policy (CSTP)
Protect your balance sheet and insure your export sales against risks ranging from non-payment to expropriation.

Specific Transaction Policy (STP)
Certain risks may worry you more than others, get the peace of mind you need with our Specific Transaction Policy.

Specific Transaction Policy (Contract Frustration)
Protect yourself from contract frustration risks, and unfair cancellation of contracts.

Investment Insurance Solutions

Foreign Investment Insurance Policy (FIIP) for Equity
Feel safe when expanding your business abroad through our FIIP, which mitigates against country risk.

 
Export Credit Agencies and Insurers

Quota Share Treaty
Protect your portfolio against commercial and political risks with our Quota Share Treaty.
Reinsurance Facultative Agreement
Reinsure your foreign investment insurance with this product.

Reinsurance of Domestic Business
Transfer some of the risk of the domestic business you have insured with this product.

Excess of Loss
Protect your portfolio and limit your losses with this product.

Coronavirus Response Resources from IsDB Group and Beyond
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