ICIEC at aGlance& Turkey Portfolio 1
Islamic Development Bank Group (IsDBG) Islamic Development Bank (IsDB/the Bank) is a multilateral Islamic financial institution established to foster socio-economic development in member countries and Muslim communities in non-member countries. The Bank commenced operations in 1975 and provides development financing and other assistance in compliance with Shari’ah. The Bank has experienced significant growth and has now evolved into the IsDB Group comprising six Group Members. Islamic Development Bank (IsDB) IsDB is rated AAA by: Islamic Research The Islamic Islamic International Islamic Solidarity & Training Corporation for Corporation for Islamic Trade Fund for Provides project financing for infrastructure, and social Institute (IRTI) the Insurance of theDevelopment Finance Development development and equity Investment and of the Private Corporation (ISFD) Provides training, participation in strategiccorporate Export Credit Sector (ICD) (ITFC) research, Provides financial and financial institutions. (ICIEC) advisory and Provides project Provides support to capacity building Provides political finance solutions financing and enhance the IsDB Vision IsDB Mission for development and commercial to develop the capacity building productive By the year 1440H, the To promote comprehensive of the Islamic risk insurance private sector to encourage capacity and Islamic Development human development, with Financial Service and reinsurance in member intra-trade across sustainable Bank will have become a a focus on the priority Industry. solutions. ICIEC countries. ICD is OIC member means ofincome world-class development areas of alleviating countries. ITFC for the poor. is rated Aa3 by rated AA by Fitch, bank, inspired by Islamic poverty, improving health, is rated A1 by Moody’s. Aa3 by Moody’s values ofcomprehensive promoting education, and A+ byS&P. Moody’s and AA- human development in improving governance and by IIRA. the Muslim world and prospering the people. help restore itsdignity. 2
5 ICIEC at aglance... ICIEC is a Unique International FinancialInstitution Established in 1994 in Jeddah - Saudi Arabia as a multilateral institution and member of the Islamic Development Bank Group Owned by AAArated Rated Aa3 Authorized Capital Pioneer of Shari’ah Islamic Development Bank and Islamic Dinar by Moody’s with a compliant export 45 countries which are members (ID) 400 million Stable Outlook. credit and investment of the Organization of Islamic (equivalent to USD 556 insurance and Cooperation million) (1 ID=USD1.39). reinsurance solutions. Our Vision Our Mission ICIEC Strategy To be recognized To facilitate trade • To enhance economic development in as the preferred and investment member countries and ensure financial enabler of trade between member sustainability. and investmentfor countries and the • To be the preferred enabler of economic sustainable economic world through and social development in member development in Shari’ah -compliant countries, using trade credit and Member Countries. risk mitigationtools. investment insurance solutions as a tool. 3
7 ICIEC member countries and shareholding ICIEC Supports Trade & Investment Flows in 47 Member Countries Top 10 shareholders Central Asia &Europe Albania, Kazakhstan, IsDB 52% Turkey Saudi Arabia 20.80% Iran 3.47% Kuwait 2.60% Southeast Asia UAE 2.60% Bangladesh, Brunei Egypt 2.32% Darussalam, Indonesia, Kazakhstan 2.25% IsDB Iran, Malaysia, Pakistan Morocco 1.73% 39 52 Qatar 1.73% Turkey 1.73% Arab AsianCountries Bahrain, Iraq, Jordan, Other shareholders Kuwait, Lebanon, Oman, Palestine, Iraq 0.17% Qatar, Saudi Arabia, Jordan 0.17% Syria, UAE,Yemen Lebanon 0.17% Oman 0.17% Albania 0.09% North Africa Benin 0.09% 9 Brunei Darussalam 0.09% Algeria, Egypt, Cameroon 0.09% Libya, Mauritania, Chad 0.09% Morocco, Sudan, Comoros 0.09% Tunisia Bahrain 1.26% Djibouti 0.09% Malaysia 0.95% Gabon 0.09% Pakistan 0.87% Guinea 0.09% South West Africa East & Central Africa Nigeria 0.76% Mali 0.09% America Benin, Burkina Cameron, Chad, Libya 0.52% Mauritania 0.09% Algeria 0.35% Suriname Faso, Côte Comoros, Djibouti, Mozambique 0.09% Tunisia 0.35% d’Ivoire, Gambia, Gabon, Mozambique, Niger 0.09% Yemen 0.35% Palestine 0.09% Guinea, Mali, Uganda Sudan 0.26% Senegal 0.09% Niger, Nigeria, Burkina Faso 0.24% Suriname 0.09% Senegal Bangladesh 0.17% Syria 0.09% Indonesia 0.17% Uganda 0.09% 4
6 ICIEC trade & investment insurance solutions ... ICIEC is the only multilateral export credit and investment insurance Corporation in the world that provides Shari’ah -Compliant insurance and reinsurance solutions TAKAFUL BUSINESS MODEL TRADE & INVESTMENT INSURANCE SOLUTIONS Banks & Export Credit Financial Agencies(ECAs)/ Corporates Institutions Insurers Managing the Managing Insurance Shareholders Operations Fund by Investing (contributions and the capital claims) on behalf of Credit Investments Credit Investments ExportCredit Policyholders Insurance Insurance Insurance Insurance andInvestment QARD HASAN (DEFICIT) solutions solutions solutions solutions Reinsurance REPAYMENT (SURPLUS) Compensation PoliticalRisk Insurance N on-Honoring Insurance Insurance Reinsuranceand ofconfirmed of Sovereign for Equity ofSupplier Co-insurance Contributions Lettersof Financial investments/ Credit Credit Obligations Projects Policyholder's Shareholder's Fund Fund PoliticalRisk BuyerCredit Insuranceof SURPLUS Insurance C ross-Border Loans Policyholder Shareholder 5
9 ICIEC added value... Mitigation Creating synergy Credit Dispute Creating with IsDB Group: re-insurance Enhancement: resolution: of Political & (A and B loan capacity: Commercial ICIEC’s early ICIEC’s Aa3 structures Risks from the private rating helps involvement in a IsDB, ITFC,ICD) market (Lloyd’s dispute between Member to mobilize market,corporate the investor and Countries in resources from reinsurers) reaching a the Member international Country may broader base lenders prevent it to of international finance with escalate into a longer terms(up claim situation to 20 years) 6
ICIEC Performance Highlights... Since inception, ICIEC has insured over USD 51 billion in trade and investment Business Insured over the past 5 years 3861.3 4500 3597.4 4000 2916.5 3500 2500 FII MT ST 2000 1302.4 1298.2 2014 430.5 576.8 2916.5 Million 1004.8 1500 903.1 576.8 2015 1004.8 265.3 3861.3 430.5 431.3 1000 353.4 265.3 196.7 157.8 2016 1302.4 353.4 3597.4 500 44.7 0 2017 903.1 196.7 431.3 2014 2015 2016 2017 2018 2018 1298.2 44.7 157.8 FII MT ST Over ICIEC 25 years it has paid upwards of USD 82 million in claim 7
15 ICIEC Performance Highlights... ICIEC has supported a variety of sectors in member countries over the past 25 years AGRICULTURE ENERGY INFRASTRUCTURE MANUFACTURING HEALTH US$1.3billion US$15.5billion US$3.7billion US$17.1billion US$512.8Million TRADE SERVICES OTHERS CONSTRUCTION US$3.8Million US$4.5billion US$5.9billion US$2.3billion 8
Sample Transactions EXPORTS from Turkey to Other Member Countries 9
ICIEC Sampleof Underwritten Projects Turkish Exports DETAILS: • Reinsured: Turk Eximbank (national ECA of Turkey) • Cover Against: Non-payment of Insurance importers from all over the world • Insurance Duration : 1 year • Percentage of cover : 90% Turkish • Transaction Value : USD 1.2 billion Exporters • Status : Active DEVELOPMENTAL IMPACT: Export of goods • Help Turk Eximbank support exporters in and services expanding their businesses Importers all over the world 10
ICIEC Sampleof Underwritten Projects Turkish Export of Goods & Services, Mali DETAILS: • Kinza Yapi was awarded for the interior design and refurbishment of a Sheraton hotel in Bamako, Mali . African Export-Import Bank was the financier of the project and Coris Bank was the agent bank. • Issuing Bank: Coris Bank issued a revolving Letter of L/C İssuance Credit (L/C) in 5 parts totalling USD 25 million in Contract favor of the contractor. ICIEC’s ROLE • Policy Holder: Kinza Yapi, Turkey Company • Policy: Specific Transaction Policy (STP) ICIEC issued from Cote a Specific Transaction Policy (STP) to Kinza Yapi d’lvoire insuring the non-payment risk of the L/C due to commercial and/or political reasons. DEVELOPMENTAL IMPACT: • Help Kinza increase their exports and expand their Financing business in member countries. Agreement Agency Agreement 11
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