Post on 25-Nov-2021
transcript
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S O L U T I O N S F O RBANKS AND FINANCIALINTITUTIONS
TRADE CREDIT INSURANCE OFFERINGS1
COVERED RISKS• Insolvencyoftheobligor.• Failureorrefusaloftheobligortopayonduedate.• Currencyinconvertibilityandtransferrestrictionsimposedbytheobligor’scountry.• Expropriation,confiscationoradversegovernmentinterventioninthebusinessoftheobligor.• Warorcivildisturbanceintheobligor’scountry.
KEY BENEFITS• Protectsbalancesheetagainstlossesduetocommercialand non-commercial(i.e.political)risks.• Improvescapitaladequacyviacapitalrelief.• OptimizesBalanceSheetbyde-riskingaportionoftheportfolio.• BetterreflectioninICAAPandCRMtechniques.• Providesadditionalheadroomcapacity.• Reducesportfoliocostusingthecreditratingofahighlyratedmultilateralinstitution.• Minimizesnon-performingassets.• Enhancesbusinessvolume.• HelpsinstructuringShariahcompliantfinancingfacilities.
ELIGIBILITY• Banks/FinancialInstitutionsdomiciledinICIECMemberCountries.• Banks/FinancialInstitutionsdomiciledinICIECNon-memberCountries ownednotlessthan50%bytheIsDBorbynationalsofaMemberCountry.• Banks/FinancialInstitutionsofferingShariahcompliantproducts.• Banksthatfinancestrategicexportstomembercountries.
TENOR OF COVER
Upto7years
CREDIT INSURANCE PRODUCTS• DocumentaryCreditInsurancePolicy(DCIP)• BankMasterPolicy(BMP)
InsuranceofLettersofCredit/BuyerCreditInsurance
KEY OBJECTIVES• De-riskingcrossbordertrade• Helpingmembercountriestobolsterexports
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HOW IT WORKS
Documentary Credit Insurance Policy (DCIP)
Bank Master Policy (BMP)
1.ImporterarrangesissuanceofL/C.2.TheissuingbankissuesanLCtotheexporter’sbank.3.Theexporter›sbankappliestoICIECtoinsuretheLC.ICIECinsurestheLCuptoacertain
percentage(e.g.90%).TheInsuredisrequiredtokeeptheuninsuredamountonitsownaccount.4.Incaseofnon-paymentbyissuingbank,theexporter›sbanksubmitsclaimandICIECpays
compensation(90%oftheloss).5.ICIECrecoversfromtheissuingbankandpays10%backtotheexporter’sbank.
Buyer
Exporter’s Bank Exporter
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31
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Importer
IssuingBank
Exporter’sBank
Exporter
1
2
3
4
5
1.Theexporter’sbankconcludesaninsurancecontract(BankMasterPolicy)withICIECuptoacertaininsuredpercentage(e.g.90%)andpaysthepremium.
2.ThebankprovidesIslamicfinancingtotheexporterorimporterwiththepurchasecontractassecurity.3.Incasethebuyerfailstopay,thebankfilesaclaimwithICIEC,whichindemnifiesthebankforupto
90%oftheloss.4.ICIECrecoversfromthebuyerandreturnsthe10%uninsuredsharetothebank.
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POlITICAl RISk INSURANCE AND CREDIT ENhANCEmENT OFFERINGS2
KEY BENEFITS• Facilitatesaccesstofinance.• Protectsbalancesheetagainstlossesduetonon-commercial(i.e.political)risks.• Attractsadditionalprojectcapital.• Enablesthepenetrationofhigh-riskmarkets.• Reducescostoffunding.
ELIGIBILITY• Newinvestments,acquisitionorexpansionofexistinginvestments/projects.• InvestmentnotprohibitedbyShariah.• InvestmentsbeingundertakeninaMemberCountry.
KEY OBJECTIVES• De-riskingForeignDirectInvestmentforinvestors,sponsorsandlenders.• Facilitatingcross-borderInvestments(Equity,DebtandLoanGuarantees).• Scalingupdevelopmentalimpactformembercountries.
COVERED RISKS• Currencyinconvertibilityandtransferrestrictions.• Expropriation.• Warorcivildisturbance.• Breachofcontract.
a. PoliticalRiskInsuranceforEquityInvestments,DebtFinanceandLoanGuarantees
COVERED RISKSNon-HonoringofSovereignFinancialObligations
• Non-HonoringofFinancialObligationsbythesovereign/ sub-sovereign/State-ownedEnterprises(SOEs).
b.Non-HonoringofSovereignFinancialObligations/PoliticalRiskInsuranceofCross-BorderLoans
S O L U T I O N S F O RBANKS AND FINANCIALINTITUTIONS
(InvestmentInsurance)
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TENOR OF COVER
Upto20years
INVESTMENT INSURANCE PRODUCTS• Non-HonoringofSovereignFinancialObligations.• ForeignInvestmentInsurancePolicy(FIIP)forFinancingFacility.• ForeignInvestmentInsurancePolicy(FIIP)forLoanGuaranteeFacility.
HOW IT WORKS
Investor Host CountryGovernment
Project
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34 5
1
1. InvestorsubmitsapreliminaryapplicationtoICIEC,ICIECgivesitsinitial‘in-principle’approvalandrequestsafulldetailedapplicationandpaymentofapplicablefees.
2. ApplicantsubmitscompletedMainApplication.Onthebasisofthedetailedapplication,ICIECwillassesstheproject/countryrisks.
3. ShouldICIECmanagementapprovetheinsurance,ICIECwillissueaninvestmentinsurancepolicytotheinvestor.
4. ICIECwillobtainthenon-objectionofthegovernmentofthehostcountry.5. Incaseofriskoccurrence,theinvestorsubmitsaclaimtoICIECandICIECpaysthe
compensation.
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Upto7years
TENOR OF COVER
ELIGIBILITY• NationalsofaMemberCountry.• CorporationsorotherjuridicalentitieslocatedinICIECmembercountriesorownedat
least50%bytheIsDBorbyaMemberCountryiflocatedinNon-membercountries.• Goodsshouldhaveatleast20%-30%value-addedfromoneormoreMemberCountries.• Incaseofcapitalgoodsorstrategiccommodities,theabovecriteriaarenotapplicable.
However,thebuyershouldbeinaMemberCountry.• GoodsnotprohibitedbyIslamicShariah.
KEY BENEFITS• Protectsbalancesheetagainstnon-paymentofexportreceivables.• Enhancescompetitiveness.• Increasesinternationalsalesbyofferingflexiblepaymenttermstooverseascustomers.• Offerstocustomersopenaccountcredittermswhileprotectingtheinsuredagainst
creditrisk.• Helpsaccessworkingcapitalfacilitiesfrombanksbyassigningtheinsurancepolicyto
thebanksassecurity.
COVERED RISKS• Insolvencyofthebuyer/Issuingbank.• Failureorrefusalofthebuyertopay.• Refusalofthebuyertoacceptgoodsaftershipment.• Arbitrarycancellationofthecontractbythebuyer.• Currencytransferrestrictionsbythebuyer’scountry/issuingbank’scountry.• Expropriationbythegovernmentofthebuyer.• Warorcivildisturbanceinthebuyer/issuingbank’scountry.
S O L U T I O N S /
CORPORATESTRADE CREDIT INSURANCE OFFERINGS1 InsuranceofSupplierCredit
KEY OBJECTIVES• De-riskingcrossbordertrade• Helpingmembercountriestobolsterexports
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CREDIT INSURANCE PRODUCTS
• ComprehensiveShort–TermPolicy(CSTP)• SpecificTransactionPolicy(STP)• SpecificTransactionPolicy(STP)(ContractFrustration)
HOW IT WORKS
1. Exporterentersintoasalecontractwithimporters/buyers.2. TheexporterconcludesaninsurancecontractwithICIECtocovernon-payment
risksofuptoacertainpercentage(e.g.90%)andpaysthepremium3. TheexportershipsthegoodstothebuyersanddeclarestheshipmentstoICIEC4. Incaseoneofthebuyersfailstopay,theexportersubmitsaclaimtoICIEC
whichindemnifiestheexporterforupto90%ofthecoveredamount.5. ICIECrecoversfromthebuyerandpays10%sharetotheexporter
Exporter Importer
3
1
52 4
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ELIGIBILITY
• Foreigninvestment/projectinMemberCountries.• Newinvestment,acquisitionorexpansionofexisting
investments/projects.• InvestmentsshouldnotbeprohibitedbytheIslamicShariah.
KEY BENEFITS
• Protectsbalancesheetagainstlossesduetonon-commercialrisks.• Attractsadditionalprojectcapital.• Enablesthepenetrationofhigh-riskmarkets• Involvementinaprojectofamultilateralinstitution(suchasICIEC) isitselfariskmitigant.• Actsasadeterrenceagainstadversegovernmentactionagainsttheproject.
COVERED RISKS
• Currencyinconvertibilityandtransferrestrictions.• Expropriation.• Warandcivildisturbance.• Breachofcontract.
TENOR OF COVER
Upto20years
S O L U T I O N S /
CORPORATESPOlITICAl RISk INSURANCE AND CREDIT ENhANCEmENT OFFERINGS2
KEY OBJECTIVES• De-riskingForeignDirectInvestmentforinvestors,sponsorsandlenders.• Facilitatingcross-borderInvestments(Equity,DebtandLoanGuarantees).• Scalingupdevelopmentalimpactformembercountries.
(InvestmentInsurance)
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Investor Host CountryGovernment
Project
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1
• ForeignInvestmentInsurancePolicy(FIIP)forEquity
HOW IT WORKS
1. TheinvestorsubmitsapreliminaryapplicationtoICIEC.ICIECprovidesitsinitial‘in-principle’approvalandrequestsafulldetailedapplicationandthepaymentofapplicablefees.
2. ApplicantsubmitsacompletedMainApplication.Onthebasisofthedetailedapplication,ICIECwillassesstheproject/countryrisks.
3. ShouldICIECmanagementapprovetheinsurance,ICIECwillthenissueaninvestmentinsurancepolicytotheinvestor.
4. ICIECwillobtainthenon-objectionofthegovernmentofthehostcountry.5. Incaseofriskoccurrence,theinvestorsubmitsaclaimtoICIECandICIECpays
thecompensation.
INVESTMENT INSURANCE PRODUCTS
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COVERED RISKS
• CommercialandPoliticalRisks.
KEY BENEFITS
• Providecapacity-buildingsupportforECAsinMemberCountries.• ProvidetechnicalassistanceintheestablishmentofECAsinMemberCountries.• Providecreditinformationservices.• JointmarketingandtechnicalassistancetotheECAsofMemberCountries.• HelpECAsinnon-MemberCountriestocoverprojectsinMemberCountries.
ELIGIBILITY
• ExportsfromICIECMemberCountriestoanycountryintheworld.• TheinflowofcapitalandinvestmentsfromtheworldintoICIECMemberCountries.• DomesticsalesofexportersinICIECMemberCountries.• ImportofstrategicandcapitalgoodsfromtherestoftheworldtoICIECMember
Countries.• InsuredgoodsshouldnotbeprohibitedbyIslamicShariahandshouldhaveatleast
30%value-addedinanyICIECMemberCountries.
• 2yearsshortterm• 7yearsmediumterm• 20yearsforeigninvestment
TENOR OF COVER
S O L U T I O N S /EXPORT CREDIT AGENCIES/ INSURERS/ EXIMBANKS
• QuotaShareTreaty• ExcessofLoss• ReinsuranceFacultativeAgreement
PRODUCTS
ExPORT CREDIT AND INvESTmENTINwARD REINSURANCEReinsurance/Co-insurance/Fronting
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Established in 1994 in Jeddah - Saudi Arabia as a multilateral institution and member of the Islamic Development Bank Group
ICIEC is the only multilateral export credit and investment insurance Corporation in the world that provides Shariah Compliant insurance and reinsurance solutions
OwnedbyAAAratedIslamicDevelopmentBankand47countrieswhicharemembersoftheOrganizationofIslamicCooperation
AuthorizedCapitalIslamicDinar(ID)400million(equivalenttoUSD552million)(1ID=USD1.38)
RatedAa3byMoody’swithaStableOutlook.
PioneerofShariah-compliantexportcreditandinvestmentinsuranceandreinsurancesolutions.
OURVISIONToberecognizedasthepreferredenableroftradeandinvestmentforsustainableeconomicdevelopmentinMemberCountries.
ICIECSTRATEGY• Toenhanceeconomicdevelopmentinmembercountriesandensurefinancialsustainability.
• Tobethepreferredenablerofeconomicandsocialdevelopmentinmembercountries,usingtradecreditandinvestmentinsurancesolutionsasatool.
OURMISSIONTofacilitatetradeandinvestmentbetweenmembercountriesandtheworldthroughShariah-compliantriskmitigationtools.
I C I E C A T A
GLANCE
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CREDIT INSURANCE
Tofacilitatesmembercountries’exportstotherestoftheworld.
Tofacilitatesimportofstrategicandcapitalgoodsbymembercountriesfromnon-membercountries.
MEMBER COUNTRIES
REST OF THEWORLD
MEMBER COUNTRIES
REST OF THEWORLD
INVESTMENTINSURANCE
INTRA-OICCOOPERATION
Tofacilitatestheflowofforeigndirectinvestmentintomembercountries.
Facilitatetrade,investmentandinformationsharingbetweenOICmembercountries.
MEMBER COUNTRIES
REST OF THEWORLD
MEMBER COUNTRIES
MEMBER COUNTRIES
ICIEC Mandate is to Expand Commercial Transactions and Encourage Investment Flows into OIC Member Countries
MANDATE
ICIECalsosupportsinternationalexporterssellingtomembercountries,ifthetransactionsareforcapitalgoodsorstrategiccommodities.
ICIECservesitsmandatebyprovidingriskmitigation&creditenhancementsolutionstomembercountries’exporterssellingtobuyersacrosstheworld,andtoinvestorsfromacrosstheworldinvestinginmembercountries.
ICIECmandateistopromotecross-bordertradeandforeigndirectinvestment(FDI)initsmembercountries.
I C I E C A T A
GLANCE
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CentralAsia&EuropeAlbania,Kazakhstan,Uzbekistan,Turkmenistan,Turkey
SouthEastAsiaBangladesh,Brunei,Indonesia,Iran,Malaysia,Pakistan
ArabAsianCountriesBahrain,Iraq,Jordan,Kuwait,Lebanon,Oman,Palestine,Qatar,SaudiArabia,Syria,UAE,Yemen
East&CentralAfricaCameroon,Chad,Comoros,Djibouti,Gabon,Mozambique,Uganda
SouthAmericaSuriname
WestAfricaBenin,BurkinaFaso,Côted’Ivoire,Gambia,Guinea,Mali,Niger,Nigeria,Senegal
NorthAfricaAlgeria,Egypt,Libya,Mauritania,Morocco,Sudan,Tunisia
ICIEC Supports Trade & Investment Flows in 47 Member Countries
Top 10 shareholders
SHAREHOLDING
50.69%20.28%
4.53%3.38%2.53%2.53%2.20%1.69%1.69%1.69%
IsDBSaudi ArabiaEgyptIranKuwaitUAEKazakhstanMoroccoQatarTurkey
41%
Bahrain 1.26%Malaysia 0.93%Pakistan 0.84%Nigeria 0.74%Libya 0.51%Algeria 0.34%Tunisia 0.34%Yemen 0.34%Sudan 0.25%Burkina Faso 0.23%Bangladesh 0.17%Indonesia 0.17%Gambia 0.17%
8%
Other shareholders Turkmenistan 0.17%Iraq 0.17%Jordan 0.17%Lebanon 0.17%Oman 0.17%Albania 0.08%Benin 0.08%Cameroon 0.08%Chad 0.08%Comoros 0.08%Djibouti 0.08%Gabon 0.08%Guinea 0.08%
Mali 0.08%Mauritania 0.08%Mozambique 0.08%Niger 0.08%Palestine 0.08%Senegal 0.08%Suriname 0.08%Syria 0.08%Uganda 0.08%Cote D′Ivoire 0.08%Uzbekistan 0.08%Brunei Darussalam 0.08%
51%
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ICIEC headquartersIsDBGroupHQComplex,KingKhalidRoad,P.O.Box15722Jeddah21454KingdomofSaudiArabiaTel.:(+966)126445666Fax:(+966)126379755
KingdomCentre,AlOlayaStreet,10thfloor,OffNo.1005P.O.Box230011Riyadh11321KingdomofSaudiArabiaTel.:(+966)112110072(*OperationalstartatQ22020)
Riyadh, Saudi Arabia Dubai, UAEOffice201,Building12,BaySquare,BusinessBayP.O.Box:114462,Dubai,UAETel:(+971)42776257/42776256
Istanbul, TurkeyIsDBGroupCountryGatewayOfficeNO:1,Kat:31Daire:122Maslak,Sariyer,Istanbul-TurkeyTel.:(+90)2122348100-Ext5556
Rabat, moroccoAvenueAnnakhilang.AvenueAlHaour,HayRyad10104Rabat,RoyaumeduMarocTel.:(+212)537548800
Dakar, SenegalIsDBGroupRegionalOffice18BoulevarddeRepublique,P.O.Box:6253DakarEtoileSenegalTel.:(+221)338891144-Ext:7735
Dhaka, BangladeshIsDBBhaban(Level-10),E/E-A,RokeyaSharaniSher-e-BanglaNagar,Dhaka-1207BangladeshTel.:(+880)29183460/29183461/29183462
Jakarta, IndonesiaIsDBCountryGatewayOffice35C,Office8,Jl.JendSudirmanKav52/53Senopati,Jakarta12190IndonesiaTel:(+62)2129333468-Ext5625
Future Office Cairo, Egypt
PRESENCEG L O B A L