ICIEC Newsletter

December 2021

Message from the CEO

The third quarter of 2021 has witnessed global merchandise trade continuing to grow beyond its pre-pandemic levels and global foreign direct investments finally showing signs of recovery. With this progress, it is no surprise that demand for export credit insurance increased in Q3 2021. As always, ICIEC stood ready to support member country governments and businesses with their trade insurance needs.

On behalf of ICIEC, I am pleased to be introducing the quarterly newsletter for Q3 2021. These newsletters are designed to update relevant news items and project highlights from the quarter. The Q3 issue also includes four new insight articles. The articles in this issue provide an industry overview of the political risk insurance landscape for the second half of 2021, the trends in insurance claims and highlights on how insurers can best cushion themselves against fraudulent claims, the pandemic recovery needs for the African continent and examines ICIEC’s contributions to date, and the final article is a project spotlight on ICIEC’s support for enhancing telecommunications infrastructure in Uzbekistan, supporting the member country to meet critical digitization needs amidst the pandemic.

I hope that you find this content to be insightful and informative. We are always open to your suggestions on what you’d like to see 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)

News & Events

The Global Islamic Finance Awards (GIFA) honoured ICIEC with the ‘Global Islamic Export Credit and Political Risk Insurance Award 2021″ for helping the post-COVID recovery of the Corporations Member Countries and their economies.

ICIEC and the Saudi Eximbank signed two landmark Facultative Reinsurance Agreements whereby ICIEC will provide Credit Reinsurance Cover to the Saudi Export Credit Agency.

ICIEC and the JSC Russian Agency for Export Credit and Investment Insurance (EXIAR) signed an amendment addendum relating to the Reciprocal Reinsurance Agreement signed between ICIEC and EXIAR on November 4th 2015.

ICIEC signed a Memorandum of Understanding with the Islamic Organisation for Food Security (IOFS) to provide insurance supporting trade and investment towards promoting food security, sustainable agriculture, and rural development in OIC countries.

ICIEC and the Islamic Food Processing Association (IFPA) signed a Strategic Partnership Agreement whereby the two entities promote OIC agri-food projects, trade, and investments.

ICIEC convened a high-level panel discussion titled “The Role of ICIEC to Attract PPP Investments in the Post-COVID-19 Era” at the 46th IsDB Annual Meeting in Tashkent.

ICIEC released its Annual Development Effectiveness Report for 2020, which highlights the Corporations SDG oriented impacts and its efforts to support Member Countries in the face of COVID-19.

The Republic of Maldives recently joined ICIEC as the Corporation’s 48th Member Country.

ICIEC participated in a high-level webinar with IsDB and almost 300 participants worldwide, titled “The Role of Credit and Political Risk Insurance in Resource Mobilization in the Post-COVID-19 Era.”

ICIEC launched its new corporate website in the Corporation’s three official languages (English, Arabic and French), accessible on mobile phones, computers, and tablets with the same user experience.

Moody’s Investor Services (Moody’s) affirmed ICIEC’s Aa3 Insurance Financial Strength Rating (IFSR) with a stable outlook for the 14th consecutive year.

Insights

The State of Political Risk Insurance

Post Covid Recovery – A Focus on Africa

Claims Market Review

Supporting Digitization: Enhancing Telecommunications Infrastructure in Uzbekistan

Project Highlights

Construction of the Eastern Road and 5 Bridges in Côte d’Ivoire

ICIEC is providing a Non-Honoring of Sovereign Financial Obligations-Loan Guarantee cover to Société Générale Paris as part of a loan facility their subsidiary has provided to the Government of Côte d’Ivoire to finance multiple projects within the member country. The facility’s total value is EUR 114 million, including EUR 40 million insured by ICIEC. Of the various projects the loan Guarantee facility is financing, ICIEC’s coverage supports the construction of a road and five bridges in Northeastern Cote d’Ivoire, one of the main cocoa-producing areas of the country. The project is part of a 1,500 km road rehabilitation program. By insuring infrastructure financings such as roads and bridges, ICIEC is helping Côte d’Ivoire achieve the United Nations Sustainable Development Goals 8 and 9, empowering local communities and supporting trade.

Supporting rural access to education and medical facilities in Senegal

ICIEC is providing a EUR 81 million Non-Honoring of Sovereign Financial Obligations (NHSFO) policy to support a leading Moroccan contractor and developer “Jet Contractors” in financing the construction of six university campuses under the Republic of Senegal’s Ministry of Education sponsorship. The campuses are to be located in rural areas, and each has been designed to include a fully functioning medical centre. The seminal project is a significant effort to support the Government of Senegal’s efforts to fight academic disengagement whilst preventing the spread of COVID-19. Developing basic infrastructure for educational purposes is crucial to Senegal’s sustainable economic development and empowering communities. ICIEC’s support for this project is enhancing access to education and healthcare for many Senegalese citizens in traditionally underserved regions, contributing to job creation and the development of critical infrastructure, and supporting the growth of Senegal’s economy.

Facilitating access to finance for Indonesia’s SME mining sector

ICIEC provided USD 40 million in Political risk cover to SIDRA Capital, supporting a loan facility to PT MCT. The loan facility is used to fund transactions involving suppliers/operators in Indonesia’s mining sector and nickel trading. ICIEC’s support for the facility is expected to promote Islamic modes of finance in the country and bridge the financing gap for local mining operators by helping SME mines gain access to funding. The facility is also expected to contribute to FDI and foreign exchange flows into the member country.

Supporting Uzbekistan’s SMEs to finance trade and imports of capital goods

ICIEC is providing USD 30 million in Bank Master Policy (BMP) to Bunge S.A., Switzerland, as part of an effort to support Uzbekistan’s SMEs in importing capital goods and equipment. The coronavirus pandemic has significantly impacted Uzbekistan’s economy. The member country has faced weakened demand for trade (particularly for natural gas) and lower domestic demand due to quarantine restrictions and uncertainty, leading to lower private consumption and investment. ICIEC’s support for this transaction enhances access to critical trade financing for approximately 50-80 SMEs. This facility also supports government policies aimed at reducing Uzbekistan’s exposure to volatile commodity prices and diversifying the range of export markets by strengthening the export potential of the private sector, particularly SMEs. The facility will help SMEs overcome specific barriers, including lack of access to financing and improving their export potential