ISLAMICTRADE FINANCESOLUTIONS PROVIDER

1

SOMETHINGABOUT USSERVING MEMBER AND NON-MEMBER COUNTRIES

ITFC became operational in January, 2008 withthe purpose of advancing trade to improve theeconomic condition and livelihood of peopleacross the world

As a leader in Shari’ah-compliant trade finance,ITFC deploys its expertise and funds tobusinesses and governments in its membercountries.

Our primary focus is to encourage more intra-trade among OIC Member Countries

WHERE WE OPERATE

2

56MEMBERCOUNTRIES+ SUB-SAHARANAFRICANON-MEMBERS

CENTRAL ASIA

SUB-SAHARANAFRICA

MENA

ASIA PACIFIC

SOUTHAMERICA

TRADE APPROVALS

3

Total approvals in 2014 exceeded the US$5.05 billion achieved in 2013

Since inception in 2008, ITFC’s cumulative funded financing reached to US$ 25 billion.

From TFPD to ITFC, the cumulative trade approvals reached up to US$57 bn in 2014.

(US$ billion)

TRADE APPROVALS FOR LDMCS

4

36%Providing trade for LDMCS

64%Trade approvals

for other countries

.

In 2014, Trade Finance Approvals for LDMCs reached US$ 1,865 million representing 36% of total approvals.

FINANCING WITH DEVELOPMENT IMPACT

5

AGRICULTURE & FOOD

INDUSTRIAL INPUTS

ENERGY COMMODITIES

MULTIPLE CHALLENGESTRADE FINANCE IN DEVELOPING COUNTRIES TRADE‐FINANCE SOLUTIONS FOR DEVELOPMENT 

• Weak infrastructure

• Limited institutional capacity

• Lack of technical and managerial skills

• Low technological capabilities

• Small size of transactions

• Bureaucracy and legal frameworks

6

• Understanding local context

• Constructive dialogue with stakeholders

• Tailored‐Made Structures

• Institutional capacity building

• HR training and development

• Holistic approach (short, medium andlong terms)

2014 -TRADE-FINANCEFOR DEVELOPING COUNTRIES

7

Country Commodity Amount Country Commodity AmountBangladesh Energy US$1.4 billion Mali Agriculture US$23 millionBenin Agriculture US$20 million Niger Agriculture US$20 millionBurkina Cotton Export US$120 million Pakistan Energy US$500 millionCameroon Cotton Export US$18 million Palestine Olive Oil US$1 millionComoros Energy US$20 million  Senegal Groundnuts US$30 millionDjibouti Energy US$30 million Suriname Energy US$30 millionGambia Energy & Agro US$62 million Tajikistan Energy & Wheat US$10 millionKyrgyzstan Line of financing US$10 million Togo Lines of Financing US$40 million

ENERGYFINANCING IN COMOROS

8

ENERGY FINANCING IN COMOROS• Securing and rationalizing cost of Comoros entire energy imports   

• Tailor‐made  structure to decrease energy public spending (US$5 million savings or 2.5% of general Government total expenditure)

• Stronger Petroleum Company (SCH), contributing to energy security and growth

• Positive macroeconomic impact, with increasing Public Treasury income and more focus on growth generating activities 

9

TRADE COOPERATION& PROMOTION PROGRAM

10

INTEGRATION

FACILITATIONCOLLABORATION

TCPP BUSINESS LINES

DEVELOPMENT OF STRATEGIC COMMODITIES TRADE MAINSTREAMING

TRADE PROMOTION TRADE FACILITATION CAPACITY BUILDING

Development of competitiveness in the exportsectors in which there are comparative advantages

Place trade on the work agenda of countries,institutions, local and regional organizations sincetrade has a positive and effective impact oneconomic development.

Promoting trade and trade cooperation amongmember countries to enable them to participate inthe process and to take advantage of globalization

Facilitating trade by promoting economicintegration between member countries and theremoval of trade barriers and improve tradeinfrastructure

Strengthening human and institutional capacitiesand support sustainability of national trade sourcesbetween member countries

11

CHALLENGES OF TRADE IN OIC & THE ROLEOF EXPORT CREDIT INSURANCE

THE ISLAMIC CORPORATION FOR THE INSURANCE OF INVESTMENT AND 

EXPORT CREDIT ____________________________Member of Islamic Development Bank Group

• ROLE OF CREDIT INSURANCE AT THE GLOBAL

LEVEL

• CREDIT INSURANCE INDUSTRY IN OIC MEMBER

COUNTRIES (AMAN UNION)

• ICIEC ROLE IN FACILITATING INTRA‐OIC TRADE

• INSTRUMENTS TO FACILITATE TRADE

TABLE OF CONTENTS

13

ROLE OF CREDIT INSURANCE AT THE GLOBAL LEVEL

BERNE UNION  G20 IFC

USD 1.9 TRILLION’S COVER (10% OF 

THE WORLD TRADE IN 2014)

COMMITTED USD 250B TO 

SUPPORT TRADE THROUGH ECAS 

AND MDBS

USD 5.0 B GLOBAL TRADE FINANCE 

PROGRAM

14

• CREATED IN 2009, UNDER THE LEADERSHIP OF ICIEC AND DHAMAN

• AIMS AT STRENGTHENING COOPERATION BETWEEN ECAS IN THE OIC MCs

• AMAN UNION CURRENTLY INCLUDES 18 ECAS FROM OIC MCS

(*) IT REPRESENTS 6.5% OF INTRA‐OIC EXPORTS

.

Business insured by AMAN UNION members  (in Billion USD)

2012 2013

Turk Eximbank 6.9 8.3

ICIEC 3.1 3.4

EGFI (Iran) 1.2 1.2

Dhaman 1.7 1.5

SEP (Saudi Arabia) 0.5 0.5

Others 6.0 6.4

Total 19.4 21.9

CREDIT INSURANCE INDUSTRY IN OIC MCs

15

ON AVERAGE, INTRA OIC TRADE REPRESENTS 40% OF TOTAL BUSINESS INSURED BY ICIEC IN THE PAST DECADE

636 8841,426 1,513

968

1,985

3,313 3,201 3,362

4,424

204 296 271523 462

6711,193 1,177 985

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ICIEC total Business Insured Business Insured Intra OIC

ICIEC ROLE IN FACILITATING INTRA-OIC TRADE

16

• COVER OF WHOLE TURNOVER BUSINESS TO EXPORTS FROM MEMBER COUNTRIES

• TENOR : MAY REACH 1 YEAR

• POSSIBILITY TO ASSIGN THE POLICY TO LOSS PAYEE (FINANCIER) 

Business indicators :‐ Business  insured (2014) : USD 70 m‐ Countries covered : 16‐ Buyers covered : 113‐ Policyholder since : 2006

INSTRUMENTS TO FACILITATE TRADE: (COMPREHENSIVE SHORT TERM POLICY)

Export Contract

Insurance contract

HIKMA PHARMACEUTICALS (JORDAN) 

Claims paymentLOSS PAYEE BANK

HIKMA BUYERS

17

• INSURED UNCONFIRMED LCS ISSUED RELATED TO EXPORTS FROM MCS

• PROVIDE CAPACITY BUILDING TO CONFIRMING BANKS 

Business indicators :

‐ Buisness  insured (2014) : USD 53m

‐ Countries covered : 6‐ Buyers covered : 7‐ Policyholder since : 

2013

IMPORTER’S BANK

EXPORTERExport contract

LC issuance

LC confirmation

Expo

rtFinancing

ATTIJARI WAFA BANK

IMPORTERS

INSTRUMENTS TO FACILITATE TRADE: (DOCUMENTARY CREDIT INSURANCE POLICY)

18

CONCLUSION

The development and expansion of the export credit insurance industry in OIC member countries both at the regional and national levels, must be a key element of the strategy to increase intra‐OIC and global trade

19

THANK YOU