RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Political Risk Insurance
Link to Product Website
Provider Name ICIEC (Islamic Corporation for the Insurance of Investments and Export Credit)
Product Definition ICIEC’s political risk insurance offers a comprehensive protection against all conventional political risks including:
1. Currency inconvertibility and transfer restriction
2. Expropriation
3. War & Civil Disturbance
4. Breach of Contract
5. Non-honoring of a sovereign financial obligation

Additional Details:

Eligible Forms of Investments:
- Equity
- Financing Facilities
- Shareholder Loan
- Loan Guaranties

The max. absolute amount(USD) is up to 120 MM

The max. % of project cost covered is 90% for equity and 95% for financing

The max. % of export content covered is 30%

Institution Type: Multilateral
Ownership: IDB and 41 member countries
Head Office: Jeddah
Provider Home Country: Saudi Arabia
Rating: Aa3 (Moody’s).

Product Type Political Risk Insurance
Defined Risks Covered Political Risks: Breach of Contract
Political Risks: Expropriation
Political Risks: Currency Transfer and Convertibility
Political Risks: War and Civil Disturbance
More on Risks Covered
Eligible Form of Investments Bank Loans
Shareholder Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions
Albania   Algeria   Bahrain  
Bangladesh   Benin   Brunei Darussalam  
Burkina Faso   Cameroon   Chad  
Djibouti   Egypt   Gabon  
Gambia   Guinea   Indonesia  
Iran, Islamic Republic   Ivory Coast   Jordan  
Kazakhstan   Kuwait   Lebanon  
Libya   Malaysia   Mali  
Mauritania   Morocco   Mozambique  
Niger   Nigeria   Oman  
Pakistan   Qatar   Saudi Arabia  
Senegal   Sudan   Syrian Arab Republic  
Tunisia   Turkey   Uganda  
United Arab Emirates   Yemen  
More on Eligible Countries
Eligible Applicants All
Eligible Sector n.a.
Maximum Tenor 15+ to 20 years
Max. Absolute Amount (USD) 100+ to 250 MM
Max. % of Project Costs Covered 75+% to 100%
Max. % of Export Content Covered Max./under 50%
Fees Market-based
The investor is required to pay: (1) a non-refundable fee of US$1000 with the Main Application; and (2) Project due diligence fee, which is to be determined based on the project. If the policy is bound, the entire amount will be credited towards the premium of the first year. Otherwise, only unused portion will be refunded.

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes link
Others: Non-objection letter required from the host country. However, this is a matter with which ICIEC has to deal with and the applicant should not worry about except the time it takes to secure the letter.
More on Other Standards
Source(s) http://www.iciec.com/
For more information, contact Khalid Yousif Khalafalla
Underwriter, Structured Finance and Investment, Islamic Corporation for the Insurance of Investments and Export Credit (ICIEC)
P.O. Box 15723
Jeddah 21454
Kingdom of Saudi Arabia
Email: kyousif@isdb.org
Phone: +966-26467589
Attachments FFIP.pdf
Additional Links www.isdb.org/
Deals N.A.

Provider Name ICIEC (Islamic Corporation for the Insurance of Investments and Export Credit)
Institution Type PUBLIC: Multilateral Development Bank
Ownership IDB and 41 member countries
Head Office P.O. Box 15723 Jeddah
Provider Home Country Saudi Arabia
Rating Aa3 (Moody’s)
Main Risk Mitigation Products n.a.
Attachments n.a.
Additional Links www.iciec.com/irj/portal/anonymous?Na ... 44774695f4f1f38f5&guest_user=iciec_en
Entered On: 10/27/2008 at 04:10 PM
Updated On: 05/05/2014 at 05:39 PM