ICIEC Signs a US$42m Reinsurance of Documentary Credit Insurance Policy Agreement with Saudi EXIM Bank
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Shariah-compliant multilateral insurer and member of the Islamic Development Bank (IsDB) Group, is pleased to announce the signing of a US$42 million Facultative Reinsurance Agreement with the Saudi EXIM Bank (Saudi EXIM) for a Documentary Credit Insurance Sub-Policy Limit in favour of Riyad Bank with a tenor of up to 12 months.
The signing ceremony was held at the Ritz Carlton Hotel in Jeddah, Saudi Arabia, on the sidelines of the IsDB Group Annual Meetings, by Mr. Oussama Kaissi, CEO of ICIEC, and Mr. Mohammed Al-Besher, Director General of the Insurance Department of Saudi Exim Bank. The Sub-Plicy comes under the master Facultative Reinsurance Agreements (FRA) signed by the two entities in 2021. Under the FRA, ICIEC will provide Shariah-compliant reinsurance covering up to 70% of Saudi Eximbank’s exposure under a Documentary Credit Insurance Policy Commercial and Political Risks (Multi Risk) issued to the Original Insured up to the agreed Credit Amount Limit.
The Sub-policy enables coverage of LCs confirmed by Ryiad Bank for several Saudi commercial banks. It will also provide additional headroom capacity for the confirmation of LCs to support trade transactions by commercial banks in Saudi Arabia and ICIEC Member States.
ICIEC’s cooperation with Saudi EXIM Bank has steadily grown over the years, with a current reinsurance agreement worth some US$140 million. This year, Saudi EXIM was named the winner of the ICIEC Awards for the Category of “Export Credit Agency of the Year 2023.” It marks Saudi EXIM’s critical support towards diversifying the Kingdom’s export base and contribution to intra-OIC trade. With a gross volume of financing and insurance services provided to exporters exceeding US$2.5 billion as at end of 2022, the contribution of Saudi EXIM to achieving the objectives of Saudi Vision 2023 is highly commendable.