ICIEC and ITFC Sign Documentary Credit Insurance Policy Agreement to Boost Trade Facilitation and Intra-OIC Trade and investment

In a significant development for the IsDB Group synergy and cooperation, ICIEC and ITFC – both members of the IsDB Group signed a landmark Documentary Credit Insurance Policy (DCIP) agreement on 2 March 2025.

This strategic cooperation marks a robust step forward in managing and mitigating risks associated with Letters of Credit (LC) transactions involving Shariah-compliant goods and services across OIC member countries and beyond, helping strengthen the economic resilience of these countries.

The policy will provide critical coverage for ITFC transactions, enhancing trade confidence and facilitating smoother financial operations in global trade involving Shariah-compliant products and services, thereby benefiting the broader economic landscape of the member countries. It is designed to provide ITFC with a comprehensive risk management tool to safeguard its LC Confirmation transactions.

ICIEC covers Frontera Capital’s USD20mn financing to JSC Aloqabank to Boost SME Financing and Economic Development in Uzbekistan

JSC Aloqabank of Uzbekistan signed a USD20mn credit agreement with Frontera Capital Group Limited on 25 February 2025 to support small and medium-sized enterprises (SMEs) and contribute to the economic growth of Uzbekistan.

This ICIEC-backed funding will provide much-needed liquidity to SMEs, enabling them to expand operations, invest in innovation, and drive sustainable economic development, ultimately supporting the broader Uzbek economy.

This agreement aligns with JSC Aloqabank’s strategic vision to strengthen international financial cooperation and support local entrepreneurs. With ICIEC’s risk mitigation and credit enhancement solutions, the partnership ensures sustainable financial support for SMEs, further reinforcing the bank’s role in fostering economic stability and strengthening Uzbekistan’s financial sector.

ICIEC Underwrites EUR194.84mn NHSFO-SOE Policy Cover for SCB/SMBC Murabaha Facility to Agrobank in Uzbekistan Aimed at SME Customers

Following a request from Standard Chartered Bank (SCB)/SMBC Bank International Plc (UK) to provide insurance coverage for its Murabaha facility extended to Joint-Stock Commercial Bank ‘Agrobank’ in Uzbekistan, ICIEC provided a Non-Honouring of Sovereign Financial Obligation – State Owned Enterprise (NHSFO-SOE) Policy to the above banks to underwrite the political and commercial risks associated with the transaction.

The Murabaha facility aims to provide financing for microfinance (retail) and SME projects through two digital platforms: “OPEN” and “B2B Marketplace”, both owned by Agrobank. The initiative will enhance access to Islamic finance for retail consumers and SMEs, supporting entrepreneurship, business growth, and financial inclusion in Uzbekistan.

The policy, which has a tenor of 7 years, became effective on 27 February 2025 and covers 95% of the risk of the facility totalling EUR194,84 mn. ICIEC’s role was to provide risk mitigation or the transaction, thus enhancing financial inclusion, supporting the expansion of Shariah-compliant financial products in Uzbekistan, and aligning with Uzbekistan’s financial sector reforms and market transition strategy.

The project, says ICIEC, will introduce Islamic financing options to retail and SME customers, enhance the local financial infrastructure, strengthen the SME sector, boost employment through increased access to financing opportunities, expand economic activities, and support economic modernization aligned with Uzbekistan’s economic reforms aimed at transitioning to a market economy.

The transaction is also aligned to UN Sustainable Development Goals (SDG) 1 which promotes financial inclusion for underserved populations, SDG 8 which enhances SME financing and job creation, SDG 9 which supports financial platforms and market access for businesses, SDG 10 which enhances access to financing for small businesses and individuals, and SDG 17 which strengthens international cooperation in financial sector development.

ICIEC Underwrites Aggregate EUR147.53mn PRI and NHSFO Policies for the Nakkaş-Başakşehir Motorway Toll-Road Project in Türkiye

ICIEC extended political risk insurance for the Nakkaş-Başakşehir Motorway Toll-Road Project in Türkiye, effective February–March 2025.

The Corporation issued two policies: a FIIP-Equity Policy to a Korean consortium of public and private investors, and a FIIP-Financing NHSFO Policy to support a Murabaha facility extended by Standard Chartered Bank (Hong Kong) and Deutsche Bank (France).

ICIEC covers 90% of the EUR73.66 million equity investment (3-year term) and 95% of the EUR73.87 million financing (12-year term), equally split between the two banks.

The project, a vital segment of the Northern Marmara Motorway (NMM), aims to reduce traffic congestion in Istanbul and enhance connectivity between the city centre, New Istanbul Airport, and the Yavuz Sultan Selim Bridge—improving mobility and trade between Asia and Europe.

The EUR1.43 billion project includes 31.3 km of roads, a 1.6 km cablestayed bridge over the Sazlıdere Valley, and multiple interchanges and structures. The concession period spans 18 years.

ICIEC Backs EUR75mn BSTDB and Standard Chartered Bank Financing Facility to Drive Sustainable Development in the Black Sea Region

ICIEC issued an insurance policy covering Standard Chartered Bank’s EUR75mn long-term financing facility to the Black Sea Trade and Development Bank (BSTDB).

The long-term financing facility, with a tenor of 7 years, extended to BSTDB, was secured from Standard Chartered Bank (SCB) to support a diverse portfolio of development projects across Albania, Azerbaijan, and Türkiye. ICIEC is providing credit risk protection of up to 95% of the facility through its Non-Honouring of Sovereign Financial Obligation Policy (NHSFO) for Multilateral Development Banks. This initiative exemplifies a multi-institutional partnership aimed at delivering high-impact outcomes through targeted investments in infrastructure, energy, and industrial sectors – reinforcing BSTDB’s role as a regional development catalyst and advancing ICIEC’s mission to support sustainable growth across its member states.

ICIEC’s involvement in this transaction is a strategic role in supporting sustainable development and regional cooperation to facilitate investments and trade among member states. This NHFO-MDB coverage will enable broader capital mobilization for development-oriented projects and enhance the capacity in delivering impactful development finance. The credit facility is expected to have substantial economic, social, and environmental impacts across the recipient countries, with outcomes in regional cooperation, environmental sustainability and economic growth. The facility is aligned to UN Sustainable Development Goals (SDG) 9 which promotes Industry, Innovation, and Infrastructure; SDG 13 which supports Climate Action, and SDG 17 which promotes Partnerships for the Goals.