Investment Insurance For Banks & Financial Institutions
– Non-Honoring of Sovereign Financial Obligations / Political Risk Insurance of Cross-Border Loans
Political Risk Insurance for Equity Investments, Debt Finance and Loan Guarantees
- Currency inconvertibility and transfer restrictions.
- Expropriation.
- War or civil disturbance.
- Breach of contract.
Non-Honoring of Sovereign Financial Obligations / Political Risk Insurance of Cross-Border Loans
- Non-Honoring of Financial Obligations by the sovereign / sub-sovereign / State-owned Enterprises (SOEs)
- Facilitates access to finance.
- Protects balance sheet against losses due to non-commercial (i.e. political) risks.
- Attracts additional project capital.
- Enables the penetration of high-risk markets.
- Reduces cost of funding
- New investments, acquisition or expansion of existing investments / projects.
- Investment not prohibited by Shariah.
- Investments being undertaken in a Member Country.
- Up to 20 years
How It Works ?
- Investor submits a preliminary application to ICIEC, ICIEC gives its initial ‘in-principle’
approval and requests a full detailed application and payment of applicable fees. - Applicant submits completed Main Application. On the basis of the detailed
application, ICIEC will assess the project / country risks. - Should ICIEC management approve the insurance, ICIEC will issue an investment
insurance policy to the investor. - ICIEC will obtain the non-objection of the government of the host country.
- In case of risk occurrence, the investor submits a claim to ICIEC and ICIEC pays the
compensation.
