ICIEC Provides Financing Facility Insurance Policy to Cover EUR166 mn Club Financing by Standard Chartered and ING Banks to ISKI for Construction of Two Water and Sanitation Treatment Projects in Istanbul
Istanbul – ICIEC signed an agreement with Standard Chartered UK and ING Bank, a branch of ING-DiBa AG to provide an insurance cover policy for their EUR166 mn club financing facility to ISKI (Istanbul Water and Sewerage Administration) for two water treatment projects in Istanbul. The FIIP (Financing Facility Insurance PolicyNon-Honouring of a Sovereign Financial Obligation of a State-Owned Enterprise) has a tenor of 7 years with the policy cover commencing on 14 November 2024. The insurance policy which covers 95% of the financing facility, covers the risk of Non-Honouring a Financial Obligation of a State-Owned Enterprise (NHFO-SOE) for a 7-year tenor. The financing will be used to fund the Cumhuriyet Drinking Water Treatment Plant (Second Stage) and the Paşaköy Advanced Biological Wastewater Treatment Plant (Third Stage).
ICIEC was approached by ING Bank (Germany) and Standard Chartered Bank (UK) to provide insurance coverage for their EUR166 mn club financing facility, aimed at supporting the Istanbul Water and Sewerage Administration (ISKI) in the development and implementation of two critical water treatment projects in Istanbul, Türkiye. ISKI, an affiliated entity of the Istanbul Metropolitan Municipality (IMM), is the exclusive provider of water and wastewater services in Istanbul, a city of over 16 million people. To finance these vital infrastructure projects, ISKI appointed Standard Chartered Bank as the structuring bank, global coordinator, and mandated lead arranger. The financing facility includes equal participation by ING Bank (via its branch, ING-DiBa AG) and Standard Chartered Bank on a 50/50 basis.
The financing facility will enable ISKI to expand its infrastructure through the Cumhuriyet Drinking Water Treatment Plant (Second Stage), thus enhancing the city’s capacity to provide safe drinking water, and through the Paşaköy Advanced Biological Wastewater Treatment Plant (Third Stage), thus improving wastewater treatment to meet advanced environmental standards. ICIEC’s insurance coverage will enhance the risk profile of the financing structure, safeguarding the lenders against potential credit and political risks. By doing so, ICIEC facilitates the realization of these essential infrastructure projects, aligning with its mandate to support trade and investment in its member countries. These projects will bolster Istanbul’s capacity to provide safe drinking water and manage wastewater treatment, contributing to sustainable urban development in Türkiye.
The projects are aimed at Capacity Enhancement, Compliance with Environmental Standards, Building Climate Resilience, Increased Operational Efficiency, and Improved Quality of Life. The Cumhuriyet Drinking Water Treatment Plant will result in increased capacity to treat and supply an additional volume of clean drinking water to the population, while the Paşaköy Advanced Wastewater Treatment Plant will see increased capacity to process additional wastewater to advanced biological treatment standards. Both projects also aim to achieve compliance with European and international environmental regulations for wastewater treatment and water quality standards; a Reduction in Environmental Footprint – which will result in the reduction of untreated wastewater discharged into natural water bodies, leading to improved aquatic ecosystems and biodiversity.
The projects are also aimed at Climate Resilience, thus strengthening Istanbul’s water and wastewater infrastructure to withstand climate-related challenges, such as water scarcity and flooding; at Increased Operational Efficiency leading to an improved performance and reliability of ISKI’s water and wastewater services, ensuring better resource management and service delivery; and Improved Quality of Life as a result of enhanced access to clean water and better sanitation services which will directly improve the quality of life for Istanbul residents. According to ICIEC, the projects, financing facility and insurance coverage support the UN Sustainable Development Goals (SDGs) 6 (Provision of Clean Water and Sanitation), 9 (Promotion of Industry, Innovation and Infrastructure) and 11 (the building of Sustainable Cities and Communities with better sanitation services will directly improve the quality of life for Istanbul residents.)
Empowering Development Through Sustainable Infrastructure: ICIEC’s Role in Insuring Côte d’Ivoire’s Tour F Project
ICIEC is providing insurance coverage for the construction of Tour F, a cornerstone project within the new Administrative City of Abidjan. This development, comprising six public office towers, will centralize government operations by bringing together more than 3,700 civil servants under one roof.
By consolidating multiple ministries and agencies currently scattered across the city, Tour F is set to address pressing logistical and infrastructural challenges in Côte d’Ivoire. Centralization will not only mitigate traffic congestion caused by inter-office travel but also strengthen inter-departmental communication, leading to swifter decision-making and enhanced public service delivery.
ICIEC’s 10-year Political Risk Insurance cover, extended to Standard Chartered Bank (SCB) Honk Kong, safeguards 95% of the EUR102 mn financing facility provided to the Ministry of Finance and Budget of Côte d’Ivoire. This facility builds upon ICIEC’s previous support, which included an NHSFO cover of EUR50 mn offered to Société Générale Paris in September 2020—an initiative that continues to progress smoothly.
With a strong focus on sustainability, Tour F incorporates energy-efficient technologies that align with the United Nations’ Sustainable Development Goals, notably SDGs 8 (Decent Work and Economic Growth), 11 (Sustainable Cities and Communities), and 13 (Climate Action). By insuring the financing of this “Green” administrative complex, ICIEC is playing a pivotal role in modernizing Côte d’Ivoire’s public services while contributing to the global sustainability agenda.
ICIEC’s support underscores its commitment to promoting innovative financing solutions that drive sustainable development across OIC member states. Through this initiative, ICIEC continues to advance infrastructural growth, create longterm economic opportunities, and improve the quality of life for communities throughout the region.
ICIEC Leads Groundbreaking Efforts to Launch the Africa-Arab Guarantee Fund with a Service Agreement for a Three-year Business Plan
Algiers – ICIEC has entered into a Service Agreement with the Arab-Africa Trade Bridges (AATB) Programme Secretariat, managed by the Islamic International Trade Finance Corporation (ITFC), Mr. Jef Vincent, and ActorX GmbH represented by Dr. Andreas Klasen, to create a three-year business plan for the proposed Africa-Arab Guarantee Fund (AAGF).
This collaboration aims at strengthen trade and investment ties between the Arab and African regions, fostering economic integration and mutual growth. The agreement was finalized virtually in the last week of November 2024. Mourad Mizouri, AMAN UNION’s Project Manager and speaker during Session 4 of the 14th AMAN UNION’s Annual General Meeting announced the agreement during a session focused on unlocking trade opportunities between Arab and African regions, underscoring its strategic importance.
As the Coordinator of the Arab-Africa Guarantee Fund, ICIEC is joining forces with ITFC, which represents the Secretariat of AATB Programme. Together with Mr. Jef Vincent, and ActorX GmbH represented by Dr. Andreas Klasen, ICIEC aims to provide a clear roadmap for the establishment and operationalization of the Fund. The initiative will include comprehensive market analysis, consultations with stakeholders, and strategic recommendations to ensure that the Fund operates efficiently and sustainably.
ICIEC first proposed the establishment of the AAGF in 2022 under the aegis of AATB Programme, launched in 2010 by the OPEC Fund for International Development (OFID), Arab Bank for Economic Development in Africa (BADEA), IsDB, ICIEC, Afreximbank, ITFC and the Governments of Egypt, Morocco, Senegal and Tunisia.
The AAGF was approved by the AATB Board in March 2022 and is positioned as a transformative initiative under the AATB Programme, aiming to close critical gaps in trade and investment facilitation between the two regions. By delivering innovative guarantee solutions, the Fund is expected to empower businesses and investors and significantly enhance economic opportunities across Arab and African nations.
The Fund provides “a scalable structure that aims to mobilize financial resources and risk mitigation capacity to support trade and investment in Arab and African countries; and ensures that all-in pricing of transactions is optimized for the end beneficiaries through blended structures.” It comprises three sub-funds, including an Arab Africa Green Facility, an Arab Africa Food Security Facility, and an Arab Africa Health Facility.
Commenting on the agreement, Dr. Khalid Khalafalla, CEO of ICIEC, said: “This agreement underscores ICIEC’s commitment to facilitating sustainable economic growth and fostering stronger trade and investment linkages between Arab and African countries. The AfricaArab Guarantee Fund has the potential to transform trade and investment landscapes in both regions, and this collaboration is a crucial step toward realizing its full potential.”
As a leading multilateral institution providing Shariah-compliant insurance and reinsurance solutions, ICIEC’s role in this collaboration aligns closely with its mandate to promote trade and investment in Member Countries.
As the Coordinator of this ambitious initiative, ICIEC will join forces with its partners to provide innovative guarantee solutions that empower businesses and investors across Arab and African nations. By addressing the critical gaps in trade and investment facilitation, the AAGF is poised to significantly boost economic growth and integration between the two regions. The AAGF is a good tool as it will serve the purpose of reducing premiums as well as the overall pricing charged by Guarantee/ Insurance entities as well as provide first and second-loss coverage on transactions, thereby supporting investment flows to critical sectors, which will lead to economic growth and development in Africa.
This milestone reflects ICIEC’s commitment to promoting sustainable development through Shariah-compliant solutions, fostering stronger trade and investment linkages, and creating lasting opportunities for its Member Countries. AAGF Partners hope to bring together other stakeholders, including national ECAs, political risk insurers, donors, multilateral and regional development banks, NGOs, and new AATB members to maximise resource mobilisation
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