Makati City, Philippines.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Indonesia Infrastructure Guarantee Fund (IIGF) signed a Memorandum of Understanding (MOU) during the 2012 Asia Finance and Risk Mitigation Forum in Makati City, Philippines on 30 April 2012. Dr. Abdel Rahman El-Tayeb Taha, the Chief Executive Officer of ICIEC and Ms. Sinthya Roesly, Chief Executive Officer of IIGF signed the MOU. The MOU aims at establishing—consistent with their respective operational policies— a lasting relationship between the two entities in furtherance of their desire to co-ordinate their activities and seek mutual cooperation in promoting infrastructure investments into Indonesia.

Commenting on the importance of this agreement, Dr.Taha said, “the signing of the MOU comes within the framework of ICIEC’s mandate to support the development of its member countries by providing export credit and political risk insurance to investment projects”. He added “the two institutions will jointly work towards increasing awareness about the importance of political risk insurance for foreign investors and financiers of projects. I am confident that singing this MOU with IIGF will greatly enhance both parties’ ability to support foreign direct investments into Indonesia”

It is worth mentioning that since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now a name, which is trusted by its partners worldwide. ICIEC’s shareholders include 40 countries from the Organization of Islamic Cooperation (OIC). Its main shareholder, the Islamic Development Bank (IDB), owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody’s & Fitch). ICIEC is rated by Moody’s as Aa3 with a stable outlook on a stand-alone basis.

IIGF, on the other hand, is a fully government-owned institution established by the Government of Indonesia (GoI) as a fiscal tool mandated to provide guarantees to mitigate the private sector exposure to government-related contractual risks in infrastructure Public Private Partnership (PPP) projects. The GoI has set up the IIGF to address the need for fiscal support to accelerate Indonesia’s infrastructure development, particularly under PPP scheme.

The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), member of Islamic Development Bank (IDB) Group, approved in its 19th Annual Meeting, held today in Khartoum, Republic of Sudan, the Annual Report and the Financial Results for 1432H (2011).

The Annual Report shows that the insurance business provided by ICIEC to member countries’ investors and exporters stood at over US$ 3.2 billion, an increase of 59% compared to 1431H (2010),while its financial results were positive despite the increase in credit and political risks results from the continuing global financial and economic difficulties.

Commenting on these results the CEO of ICIEC, Dr. Abdel-Rahman Eltayeb Taha, said this is “ we proud that the Corporation has managed to increase its volume of business with exceptionally low claims ration and to maintain its strong financial position under such difficult circumstances. ICIEC’s strength has been underscored by the confirmation of the Aa3 rating assigned to the Corporation for the fourth consecutive year by Moody’s Investors Service”.

Dr. Taha added that they are “This growth in business was as a result of the increased awareness among exporters and banks in our member countries of the importance of credit and political risk insurance as an affective risk mitigant, especially during these turbulent times. It is also a consequence of the responsiveness of ICIEC to the demand of its clients by introducing more flexibility in its product offering, and offering new products such as the “non-Honoring of Sovereign Obligations” and “Contract Frustration Policies.

Contact:

Jamel eddine Naga
Promotion & International Relations Unit, ICIEC
Tel : +966 2 6467608
Fax : +966 2 6443447
Mobile: +966 5 68618945
E-mail : jnaga@isdb.org

ICIEC and The State Bank of Pakistan  (SBP) signed a Memorandum of Understanding (MOU) today to cooperate in promoting trade and investments in Pakistan.  Mr.Yaseen Anwar, the Governor SBP and Dr. Abdel Rahman EI-Tayeb Taha, the Chief Executive Officer of ICIEC signed the MOU. The MOU aims at establishing a basis for the exchange of  information between the two entities on banking industry's condition and operating performance indicators and ICIEC's exposures on the banks operating in the country. Headquartered in Jeddah, Saudi Arabia, ICIEC is the only multilateral Shariah Compliant ECA in the world providing credit and political risk insurance (Takaful) services. ICIEC's risk mitigating instruments help its clients  (exporters, banks and investors)  in its member countries in expanding their business volumes in a risk and cost effective manner.

Since its inception in 1995, ICIEC has provided insurance commitments in excess of USD 11 billion. Over 17 years in business, ICIEC has carefully nurtured professional relationship with leading exporters, ECAs, reinsurers and banks. ICIEC is now  a name  which  is trusted by its partners worldwide. ICIEC's shareholders include  40 countries from  the  Organization Islamic Cooperation (OIC). Its main shareholder, Islamic Development Bank (IDB) owns 67% of the capital and is rated AAA by the three global rating agencies (S&P, Moody's & Fitch). ICIEC is rated by Moody's as Aa3 with a stable outlook on a stand-alone basis.

ICIEC's operations in Pakistan among others include provision of Shariah compliant insurance coverage  to LC issuing banks in Pakistan, which aims to help them in getting their LCs confirmed at competitive prices. Confirming banks benefit from  ICIEC's services in terms of credit risk transfer and favorable risk weight treatment under the Basel II framework. ICIEC also provides export credit insurance in support of Pakistani exporters and provides political risk insurance to encourage the flow of foreign investments into Pakistan.

Before signing of the MOU, Dr. Taha called on the Governor and discussed  ICIEC's plans to further expand its operations in Pakistan. The Governor welcomed and appreciated ICIEC's interest in Pakistan and assured SBP's full support and facilitation to ICIEC for promoting trade and investment in the country.

Dr. Taha said, "The signing of the MOU comes within the framework of the role of ICIEC in supporting financial institutions in its member countries, to enable them to provide export finance to their customers". “I am confident  that singing the MOU with SBP will greatly enhance ICIEC's ability to support Pakistan's international trade, particularly with OIC member countries" He added.