1 Member of Islamic Development Bank Group

2 Member of Islamic Development Bank Group

ICIEC - Who we are

Business Profile

Products & few Sample Transactions

Table of Contents

3 Member of Islamic Development Bank Group

Who We Are

IFSR Aa3

Credit Alliance

• ICIEC is a multinational institution with full juridical personality and multilateral status

• Established in 1994 & based in Jeddah – KSA with a representative office in DIFC - Dubai

• Owned by the Islamic Development Bank Group in addition to 43 member countries from Asia, Africa and Europe

• Subscribed capital is US$ 637 million

• Rated Aa3 by Moody's

• The only Export Credit Agency in the world that provides export credit & Investment insurance in compliance with the Islamic Shariah

• Permanent Member in Berne Union, Coface Alliance, Prague club and founding member of AMAN Union

4 Member of Islamic Development Bank Group

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International Islamic Trade Finance Corporation

(ITFC)

Islamic Corporation for the Development of the

Private Sector (ICD)

Islamic Corporation for Insurance of Investments

and Export Credits (ICIEC)

Islamic Research and Training Institute (IRTI)

Affiliated Institution

Aa3 rated by Mood’s

Aa3 rated by Mood’s

5 Member of Islamic Development Bank Group

ICIEC Mandate…

• Covering domestic sales inside member countries

• Helping MCs import of strategic and capital goods from the world

• To encourage the flow of capital and investment from the World to Member Countries

• To encourage exports from Member Countries to the rest of the World Export

Credit Insurance

Investment Insurance

Domestic Credit

Insurance

Import Credit

Insurance

6 Member of Islamic Development Bank Group6

•ICIEC Membership – a broad swathe …

1. ALGERIA2. BAHRAIN3. EGYPT4. JORDAN5. KUWAIT6. LEBANON7. LIBYA8. MAURITANIA9. MOROCCO10. OMAN11. QATAR12. KSA13. SUDAN14. SYRIA15. TUNISIA16. U.A.E17. YEMEN18. Iraq 19. Palestine

1. BENIN2. BURKINA FASO3. CAMEROON4. CHAD5. GAMBIA6. DIJBOUTI7. GUINEA8. MALI9. NIGER10. SENEGAL11. UGANDA12. NIGERIA13. GABON14. Ivory Coast15. Mozambique

1. BANGLADESH2. BRUNEI3. IRAN4. INDONESIA5. MALAYSIA6. PAKISTAN7. TURKEY 8. KAZAKHSTAN

19 ARAB Countries

8 ASIAN Countries

15 AFRICANCountries

1 EUROPEANCountry

1. ALBANIA

7 Member of Islamic Development Bank Group

ICIEC Product Mix

Banks

Investors

ECAs

Suppliers Cr

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Insu

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Political Risk

Insurance

Trade Credit

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Foreign Investment Insurance :• Equity Investments

• Non Equity Investments

Inward Reinsurance :

• Quota Share Treaty

• Facultative Reinsurance

• Excess of Loss Treaty

Trade Finance and Investment Insurance• Bank Master Policy

• Documentary Credit Policy

• Loss Payee Assignment for CSTP/STP

• PRI for Financing Facilities

• Non-Honoring of Sovereign Financial Obligations

Export & Domestic Credit Insurance:• Comprehensive Short term Policy

• Specific Transaction Policy

• Supplement Medium term Policy

8 Member of Islamic Development Bank Group

8

Facilitating Trade; Insuring Confirmed L/C’s

Tombstone

• Amount: $ 30 million• ICIEC’s covered: $ 20 million• Credit Period: 30 days• Pricing– Pre Agreed 3% p.a applied to

the credit risk period.• ICIEC cover –Risks Covered- 90% risk

of non- payment of LC issuing Bank• Settled in May, 2008

Importer in Ethiopia

Importer’s BankCBE

Exporter in Saudi Arabia

DCIP PH LC confirming Bank

Confirms $30m

Export Contract

White Sugar Cane valued at $ 30.0m

Opens LCMakes

PaymentsPayment Settled

in 30 days

Adds Confirmation to

LC Credit Limit Approval for

$20 m

$ 20.0m Insured By ICIEC

ICIEC provided a cover of USD 20 million covering The risk of issuing bank

9 Member of Islamic Development Bank Group

9

Facilitating Short Term Trade; Loss Payee Structure

Tombstone

• Exporter signs contract with Importer on CAD or Open Account Terms

• ICIEC issues CSTP Policy to Exporter

• Percentage of cover: 90%

• In case of Buyer’s default Exporter will Submit Claim with ICIEC

• ICIEC will compensate 90% of the Loss

ExportsOpen Account or CAD Terms

Or Even on L/C

International Buyer

Credit Information/Credit Assessment Assistance

COFACE/Atradius/Local Sources

Midal CablesBahrain

DEFAULT

SUBMITS CLAIM,RECEIVES COMPENSATION FROM ICIEC

CSTP Policy

ICIEC provided a cover of USD 20 million covering The risk of issuing bank

10 Member of Islamic Development Bank Group

Facilitating Foreign Investment: DCT Project Djibouti

MIGA(Insurer)

Djibouti Port Authority

Government ofDjibouti

Doraleh Container Terminal

DPW Djibouti

DirectAgreement

Concession Agreement

Banks

Islamic financing Agreement

Main Rationale for ICIEC Involvement

: Islamic financing component

Reinsurance

Tombstone

• Covered Parties – Islamic Financing Tranche providing banks

• Insurance Duration – 15 years

• Percentage of cover – 90%

• Investment Value – USD 427 million

• Cover amount – USD 50 million

• Status –currently underway

11 Member of Islamic Development Bank Group

KEY POLICY HOLDERS

12 Member of Islamic Development Bank Group

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