ICIEC signs €36m Sovereign Non-payment Insurance with banks
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), signed additional €36 million uplift to the existing €146 million Non-Honouring Sovereign Financial Obligation (NHSFO) Insurance Policy.
The agreement was signed with Standard Chartered Bank (UK) Ltd, Standard Chartered Bank (Hong Kong) Ltd and Société Générale.
It provides comprehensive coverage to the financiers regarding the non-payment risks of the Republic of Uganda for the funding of infrastructure projects under the Development and Infrastructure Budget 2022 of Uganda.
The signing ceremony was held at the Ritz Carlton Hotel in Jeddah, Saudi Arabia, on the sideline of the IsDB Group Annual Meeting, by Mr. Oussama Kaissi, CEO of ICIEC, Mr. Sujithav Sarangi, Executive Director, Structured Export Finance, Standard Chartered bank; and Mr. Yves Jacob, Managing Director and Head of Public Sector Finance, Société Générale.
ICIEC’s intervention enabled the additional investment of €36 million by Standard Chartered Bank (Hong Kong) to finance government projects in several sectors.
The NHSFO Insurance Policy of ICIEC provides comprehensive coverage to financiers regarding the non-payment risks of sovereign obligors.
The €36 million is a top-up under the accordion mechanism of the Islamic financing of €146 million advanced to the Ministry of Finance, Planning and Economic Development of Uganda related to several projects covering agriculture, climate action, education, healthcare, power infrastructure, transportation and water infrastructure.
The programme is designed with a streamlined impact reporting requirement for mapping the programme outcomes to the targeted intervention.
This initiative enhances country project ownership and flexibility of intervention without compromising the impact reporting criteria set by the banks and ICIEC. The project is being financed by Standard Chartered Bank (Hong Kong) and Société Générale (as Participants) with Standard Chartered Bank UK (as Agent) in Murabaha format.