ICIEC at a Glance & Turkey Portfolio
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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 Provides project financing & Training Corporation for Corporation for Islamic Trade Fund for for infrastructure, and social Institute (IRTI) the Insurance of theDevelopment Finance Development development and equity Provides training, Investment and of the Private Corporation (ISFD) participation in strategiccorporate Export Credit Sector (ICD) (ITFC) and financial institutions. research, Provides financial advisory and (ICIEC) 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 is rated Aa3 by rated AA byFitch, countries. ITFC for the poor. bank, inspired by Islamic poverty, improving health, Moody’s. Aa3 by Moody’s is rated A1 by 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 its dignity. 2 5 ICIEC at a glance... 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 Authorized Capital Rated Aa3 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=USD 1.39). 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, IsDB Kazakhstan 2.25% Iran, Malaysia, Pakistan Morocco 1.73% 52 Qatar 1.73% 39 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% Algeria, Egypt, 9 Brunei Darussalam 0.09% Libya, Mauritania, Cameroon 0.09% Chad 0.09% Morocco, Sudan, Tunisia Comoros 0.09% 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% Suriname Faso, Côte Comoros, Djibouti, Algeria 0.35% Mozambique 0.09% d’Ivoire,Gambia, Gabon, Mozambique, Tunisia 0.35% Niger 0.09% Guinea, Mali, Uganda Yemen 0.35% Palestine 0.09% Sudan 0.26% Niger, Nigeria, Senegal 0.09% 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 TRADE & INVESTMENT INSURANCE SOLUTIONS TAKAFUL BUSINESS MODEL Banks & Export Credit Financial Agencies(ECAs)/ Institutions Corporates Insurers Managing Insurance Managing the Operations Shareholders (contributions and Fund by Investing Credit Investments Credit Investments ExportCredit claims) on behalf of the capital Insurance Insurance Insurance Insurance andInvestment Policyholders solutions solutions solutions solutions Reinsurance QARD HASAN (DEFICIT) REPAYMENT (SURPLUS) Insurance Non-Honoring PoliticalRisk Compensation Insurance Insurance ofconfirmed of Sovereign Reinsuranceand ofSupplier for Equity Co-insurance Lettersof Financial Credit investments/ Contributions Credit Obligations Projects Policyholder's Shareholder's Fund Fund PoliticalRisk BuyerCredit Insuranceof Insurance Cross-Border SURPLUS Loans Policyholder Shareholder 5 9 ICIEC added value... Mitigation Creating synergy Creating Credit Dispute of Political & with IsDB Group: re-insurance Enhancement: resolution: (A and B loan capacity: Commercial ICIEC’s Aa3 ICIEC’s early Risks structures from the private rating helps involvement in a IsDB, ITFC, ICD) market (Lloyd’s Member dispute between to mobilize market, corporate Countries in the investor and resources from reinsurers) reaching a the Member international broader base Country may lenders of international prevent it to 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 4500 4000 3861.3 3597.4 3500 2916.5 2500 FII MT ST 2000 2014 430.5 576.8 2916.5 1500 Million 1302.4 1298.2 2015 1004.8 265.3 3861.3 1000 1004.8 903.1 576.8 430.5 431.3 500 353.4 2016 1302.4 353.4 3597.4 265.3 196.7 157.8 0 44.7 2017 903.1 196.7 431.3 2014 2015 2016 2017 2018 FII MT ST 2018 1298.2 44.7 157.8 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$1.3 billion US$15.5 billion US$3.7billion US$17.1 billion US$512.8 Million TRADE SERVICES OTHERS CONSTRUCTION US$3.8Million US$4.5 billion US$5.9 billion US$2.3 billion 8 Sample Transactions EXPORTS from Turkey to Other Member Countries 9 ICIEC Sample of 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 Turkish • Percentage of cover : 90% • Transaction Value : USD 1.2 billion Exporters • Status : Active Export of goods DEVELOPMENTAL IMPACT: and services • Help Turk Eximbank support exporters in expanding their businesses Importers all over the world 10 ICIEC Sample of 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 Contract Credit (L/C) in 5 parts totalling USD 25 million in 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: Financing • Help Kinza increase their exports and expand their Agreement business in member countries. Agency Agreement 11 ICIEC Sample of Underwritten Projects Turkish Export of Goods & Services, Uzbekistan DETAILS: • Exporter: Kinza Yapi was awarded the project by the Government of Uzbekistan for the refurbishment of an hotel in Uzbekistan and National Bank for Foreign 5.L/C Economic Activity of the Republic of Confirmation Uzbekistan (NBU) issued an L/C to KuveytTurk Participation Bank. 4.Insurance against 1.Contract the non-payment ICIEC’s ROLE of the L/C • Policy Holder: KuveytTurk Partcipation Bank • Policy: Documentary Credit Insurance Policy Government (DCIP) of • KuveytTurk Participation Bank confirmed the L/C amounting to USD 14 million under Uzbekistan ICIEC’s Documentary Credit Insurance Policy (DCIP). 2.L/C Request DEVELOPMENTAL IMPACT: • Help Kinza increase their exports and 3.L/C expand their business in member İssuance countries. • Help KuveytTurk enhance their credit limits 12 Foreign Direct Investments (FDI) and Financings 13 Turkish Steel Factory, Algeria Turkey DETAILS: • Project Enterprise: Tosyali Iron & Steel Insurance Industry • Investor: Tosyali Group • Total Investment Amount: USD 1.3 Billion • Status: Underway ICIEC’S ROLE: • Policy: Equity Investment Insurance Policy • Policy holder: Tosyali Group • Amount of Policy: USD