IJInvestor Awards 2024’s Insurance Adviser of the Year for Africa has been awarded to the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) with judges saying the firm demonstrated clear success in a very challenging market.  

Judges said the scope and importance of the projects ICIEC was involved in throughout the judging period put them ahead of the pack. 

In December 2023, ICIEC and the African Development Bank (AfDB) signed a strategic risk-sharing engagement to support the financing of ESG projects in Côte d’Ivoire. ICIEC has provided a Non-Honoring of Sovereign Financial Obligations (NHSFO) insurance cover of €194 million ($212m), backstopping the €400 million Partial Credit Guarantee (PCG) issued by AfDB, or about 48.5%.  

This insurance significantly de-risks the project for lenders by safeguarding against potential defaults, thereby enhancing the financial viability and attractiveness of the venture. ICIEC’s role not only facilitated substantial financial flow into crucial ESG projects but also boosts investor confidence, enabling the mobilization of additional resources essential for sustainable development efforts in Côte d’Ivoire. 

The NHSFO policy protected lenders against potential sovereign defaults, ensuring the project could proceed smoothly. 

The transaction involved securing financing for diverse projects in Côte d’Ivoire, including: 

• water sanitation
• housing
• renewable energy 

The novel financing strategy was done amid a challenging market environment marred by geopolitical risks, economic volatility and regulatory hurdles. The bespoke solution de-risked the transaction, making it more appealing to international investors and reducing the cost of capital. The NHSFO policy protected lenders against potential sovereign defaults, ensuring the project could proceed smoothly. 

The complexity of the deal, pointed out by judges, was coordinating multiple stakeholders with varying risk appetites in an adverse market, where traditional financing methods were less viable. ICIEC’s innovative insurance solution provided the necessary financial security, attracting investors despite the challenges. 

On top of that, the body has to navigate Cote d’Ivoire’s regulatory landscape, requiring in-depth knowledge of local laws. ICIEC’s expertise in emerging markets and its ability to deliver tailored solutions were crucial in overcoming these challenges, enabling the successful closure of the transaction. 

As one judge concluded: “It was a clear success in making possible financing during difficult market conditions and also combining this with clear ESG and UN SDG goals.”