Jeddah, January 31, 2024, The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a multilateral credit and political risk insurer affiliated with the IsDB Group, and the African Development Bank (AfDB) have entered into a strategic risk-sharing partnership aimed at advancing sustainable development in Côte d’Ivoire, as per a press release issued today.
According to the release, ICIEC has provided insurance coverage amounting to 194 million euros to back the 400 million euros Partial Credit Guarantee (PCG) issued by the African Development Bank. This PCG is designed to mitigate the non-payment risk associated with a 533 million euros facility extended by Standard Chartered Bank (SCB) to the government of Côte d’Ivoire.
The funds from this facility will be allocated to various environmental and social projects in alignment with Côte d’Ivoire’s Sustainable Framework. These encompass initiatives in renewable energy, education, pollution prevention and control, terrestrial and aquatic biodiversity conservation, health infrastructure, and sustainable water and wastewater management.
The release underscores that the partnership between AfDB and ICIEC is crucial in amplifying the bank’s partial credit guarantee scheme, facilitating the attraction of essential financing from Standard Chartered. AfDB will retain a 51.5% stake, equivalent to 206 million euros, in the 400 million euros PCG, with ICIEC covering the remaining 194 million euros.
The arrangement is described in the release as a strategic optimization of AfDB's balance sheet, transferring a portion of the exposure to ICIEC while maintaining a significant residual exposure, reflecting a well-balanced risk-sharing strategy.
Oussama Kaissi, CEO of ICIEC, emphasized in the release, "We are proud to partner with the AfDB in this transformative initiative, aligning with our mission to bolster sustainable and inclusive development in member states." Kaissi highlighted that by providing insurance coverage, ICIEC is not only supporting Côte d’Ivoire in realizing its ambitious National Development Plan but also enhancing the country’s funding terms amid challenging market conditions. This collaboration marks the first risk participation arrangement between the two institutions, setting the stage for increased cooperation in mutual member states.
Hassatou N’Sele, Vice President for Finance and Chief Financial Officer at AfDB, stated that the facilitated loan will aid Côte d’Ivoire in advancing towards contributing to the Sustainable Development Goals (SDGs) and improving the quality of life for the people of the country. This initiative signifies a significant step in fostering economic resilience and progress in emerging markets, in line with the objectives of the Africa Co-Guarantee Platform, in which both ICIEC and AfDB play integral roles as founding participants.
