Trade Solutions Provider 1 SLIDE ABOUT ITFC International - - PowerPoint PPT Presentation

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Trade Solutions Provider

International Islamic Trade Finance Corporation (ITFC)

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ABOUT ITFC

International Islamic Trade Finance corporation (ITFC) became operational in January 2008, with the purpose of advancing trade to improve the economic condition and livelihood of people across the world. As a leader in Islamic Finance - compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. As a member of the Islamic Development Bank Group (‘AAA’ rated by S&P, Fitch and Moody’s), ITFC has provided more than US$ 45.4 billion of trade financing to OIC Member Countries since 2008. With a subscribed capital of US$ 838.83 million, our primary focus is to encourage and act as a catalyst for intra-trade among OIC Member Countries. In 2017, Moody’s assigned a first-time issuer rating of A1/P-1 to ITFC with Stable Outlook.

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Our Vision

“ITFC is the leading provider of trade solutions for OIC member countries' needs”

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Our Mission

“ITFC is a catalyst for trade development among OIC member countries and beyond”

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Our strategy

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Advancing Trade Improving Lives

Development Impact Financial Sustainability Balancing financial sustainability with development impact

improving lives

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Where we

• perate

57

member countries

Asia Central Asia MENA Sub-Saharan Africa South America

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• ur core

competencies

+ + + + +

Rich Heritage

Over 40 years of experience in trade finance/promotion & cooperation

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Technical Expertise

Originator, Structurer & Arranger, Implementer, Trade Related Technical Assistance

Geographic Presence

57 member countries in 4 continents

Solutions for Impact

Structured Trade Finance SMEs/LDMCs: Facilitation, Capacity Building, and Promotion

Preferred Creditor Status

57 member countries

A1 Rating

Obtaining A1 Rating by Moody’s

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trade approvals 2008– 2018

Total approvals in 2018 are US$5.2 billion Since inception in 2008, ITFC’s cumulative funded financing reached US$45.4 billion Since inception, ITFC financed 708 operations

2,505 2,166 2,554 3,033 4,466 5,049 5,054 6,084 4,445 4,900 5,200 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017 2018

(US$ million) *15 months

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trade approvals by region 2008 – 2018

In 2018, ITFC merged the Asia/CIS and MENA portfolios.

1,286 1,477 1,544 1,959 3,086 3,415 2,464 3,229 2,172 2,402 3,353 990 530 849 879 1,171 1,399 2,142 2,270 1,513 1,673 230 160 161 195 209 235 448 586 760 826 1,848 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017 2018

US$ million

Asia/CIS MENA Africa

*15 months

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trade activities in numbers

68.5% 11.5% 9% 10% 1%

Sovereign Corporate Structured Bank Guaranteed Credit Insurance

Approvals by Instrument

2008– 2018

72% 12% 13% 6%

Trade Approvals by Sector

Energy Financial Food & Agriculture Other

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trade approvals for LDMCs

36%

Providing trade for LDMCS

64%

Trade approvals for

• ther countries

Since inception, Trade Finance Approvals for Lest Developed Member Countries (LDMCs) reached US$ 16.4 billion representing 36%

• f

total approvals.

(2008– 2018)

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Financing Trade with Development Impact

ISLAMIC FINANCE PRODUCTS SYNDICATION AND RESOURCE MOBILIZATION TRADE OPERATIONS

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financing mechanisms

• Direct Financing: ITFC purchases the goods from the supplier, on behalf of the beneficiary, and

sells them immediately to the beneficiary with deferred payment arrangement. Title of goods is transferred immediately from ITFC to the Beneficiary.

• Line of Financing: It is designed to ultimately benefit SMEs. Banks / FIs act as Intermediary (Lines

Agents) between ITFC and the end beneficiaries, whereby ITFC signs Murabaha Agreement with end beneficiary (SME) against a Guarantee from the Bank/FI.

• Two-Step Murabaha: It is designed to ultimately benefit SMEs. ITFC signs a Murabaha contract

with the bank (the bank is the counterparty to ITFC); who sings a second Murabaha contract with the SME.

• Deferred Murabaha (Structured Commodity Finance): ITFC purchases the goods and holds

the title until it is sold to the beneficiary. The goods may be sold (i.e. transfer of title) in one or several sale transactions to the beneficiary during the financing period.

• Co-Financing & Syndication: In this mode of financing, ITFC, acting as a Mudarib (lead arranger
• r co-arranger), invites one or more Financial Institutions to participate in the financing
• Islamic Discounting: This is similar to what is known conventionally as Factoring / Forfaiting.

ITFC purchases goods from an exporter against assignment of receivables due from his end-

• buyers. The exporter acts as ITFC’s agent to sell the goods and financing can be offered with or

without recourse on the exporter.

ITFC may also participate in syndications arranged by other institutions

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Security Type

• Governmental

(Sovereign) Guarantee: from the Government, Central Government

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any competent agencies of the Government in the Member Country

• Bank Guarantee Financing: from commercial banks or

financial institutions acceptable to ITFC and as determined by exposure ceiling guidelines.

• Credit Insured Financing: from insurance providers

acceptable to ITFC and as determined by exposure ceiling guidelines.

• Structured Commodity Finance (SCF): Asset backed

financing where the underlying security is a commodity stored in a warehouse and leased/subleased by a Collateral Manager. The title of the goods remains vested in ITFC until it is purchased by the beneficiary with a minimum Security Coverage of 115%. The commodity should be liquid with readily available market (i.e. grain, crude oil and petroleum products, steel and metal….etc).

• Corporate

Guarantee: is a form

• f

a Letter

• f

Guarantee (L/G) provided by a parent or any other entity (with acceptable creditworthiness to ITFC) and as determined by exposure ceiling guidelines.

• Structured Finance: ITFC may also consider other

types of securities such as Assignment of Receivables from an acceptable debtor, mortgage and

• ther

securities that meet ITFC’s criteria.

• Personal Guarantee(s): ITFC may consider Jointly &

Several Guarantee of the sponsors in certain cases. Certified statement of personal assets and liabilities needs to be provided.

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resource mobilization in numbers

institutions, international & regional funds, local commercial banks across various financial markets

65

ITFC has close cooperation with more than member countries in MENA, Africa, Asia & CIS

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Syndicated Trade Finance Operations Annually in favor of more than

15

billion in resource mobilization

• ut of a total amount of US$

27.3

Since inception in 2008, ITFC successfully achieved US$ billion of trade financing as a result of successful partnership with Financial Institutions and banks

45.4

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Advancing Trade in Our Member Countries with trade development programs

FACILITATION OF TRADE DEVELOPMENT PROJECTS INTEGRATION PARTNERSHIPS

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Trade Finance and Trade Development How ITFC has contributed to at least 7 SD goals

ITFC Contribution

• Estimated 88,000 people

lifted out of poverty.

• US$4.9 billion in trade

finance across 19 countries.

• 36% of trade finance

involved LDMCs amounting to US$1.7 billion. ITFC Contribution

• US$439

million to support food and agriculture needs.

• US$293 million of food and

agriculture financing in Africa.

• US$146 million of food and

agriculture financing in Asia ITFC Contribution

• 130 deals were

negotiated amounting to US$80 million for within a trade facilitation Pharmaceutical B2B Conference

ITFC Contribution

• Estimated

10.4 million people provided with reliable access to electricity for

• ne year
• US$ 3.8 billion to support

energy needs

• 40%
• f

clients hold a sustainable environment policy

ITFC Contribution

• Over 230,300 direct jobs supported
• 25,900 Female jobs supported by ITFC financing
• 9,000 new jobs created through ITFC Interventions
• 1,500 Youth jobs supported by ITFC financing
• ITFC facilitated the training of 539 youths
• US$4.3 billion of intra-OIC trade

ITFC Contribution

• US$920 million in trade finance towards the private

sector

• US$759 million of trade finance towards SMEs
• 33% of raw materials imported by clients from LDMCs
• 20% of finished goods exported by clients to LDMCs

ITFC Contribution

• US$4.03 billion mobilised

from financial partners

• $4 mobilised for every $1

provided by ITFC capital

• ITFCs

finance represented 38%

• f

the clients total external financing on average

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During the last 10 years, ITFC has contributed to at least 7 goals

ITFC Contribution

• Estimated 809,000 people

lifted out of poverty.

• US$40.2 billion in trade

finance across 51 countries.

• Support to 15 countries

with low HDI score amounting to US$3.1 billion. ITFC Contribution

• US$4.9 billion to support

food and agriculture needs. ITFC Contribution

• 130 deals were negotiated

amounting to US$80 million for within a trade facilitation Pharmaceutical B2B Conference ITFC Contribution

• Estimated 68 million people

provided with reliable access to electricity ITFC Contribution

• US$28.5 billion of intra-OIC trade

ITFC Contribution

• US$3.6 billion of trade finance towards SMEs

ITFC Contribution

• US$31.7 billion mobilised

from financial partners

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ITFC Sovereign Energy Fund

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ISEF: Unique Sovereign Energy Trade Finance Fund

ITFC Sovereign Energy Fund (“ISEF”) is the first ever Sharia compliant investment fund focused on Sovereign Energy Transactions. The key objective of ISEF is to offer to investors a diversified portfolio of trade finance investments by sub-sector, country and deal type, which collectively capture the attractive sovereign risk growth

• pportunity

First ever Islamic Finance compatible trade finance energy sovereign fund Offers a geographically diversified portfolio of trade finance transactions in a single offering Investing in energy related trade finance, structured trade, export finance, import finance and supply chain financing of governments and sovereign entities Investment approach generating competitive investment returns and encouraging ethical business practices Low level of risk and capital preservation guaranteed by multiple layers

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Sub Advisor Managed by Legal Counsel

ISEF is expecting to reach up to US$ 500 millions at final close

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ISEF Investment Strategy

The investment objective of the Fund is to maximize risk-adjusted returns by investing in Sharia Compliant Trade Finance Investments that are expected to generate low volatility & competitive returns. ISEF will operate with a minimum commitment per investment of US$25 million. The Fund will be investing within the following parameters: Diversification of countries and limited exposure for each single beneficiary Sector exposure level 3 as per MSCI classification is diversified between more than 7 sectors Fund participation in any single transaction originated by any party other than ITFC or the Investment Management Team should not exceed 50% of the transaction size The maximum loan term shall be 36 months and compliant with Islamic Development Bank (IsDB) group regulations for each product or mode of financing The Fund shall not invest in a country which is not a member of the OIC Member Countries, with the exception of transactions for non-OIC Member Countries involving OIC Member Countries as suppliers, buyers, contractors or origin of goods and services

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ISEF Investment Structure

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Where We are

Headquarters P.O. Box 55335, Jeddah 21534, Kingdom of Saudi Arabia. Phone: +966 12 646 8292 Fax: +966 12 637 1064 Regional Offices Istanbul- Turkey Office Beybi Giz Plaza Dereboyu Cad. Meydan Sok. No:1 Kat:31 Daire:122, Maslak, Sariyer, Istanbul, Turkey Phone: +90 212 234 81 00 Fax: +90 212 234 81 53 Dhaka - Bangladesh Office IDB Bhaban (10th Floor), E/8-A, Rokeya Sharani, Sher-e Bangla Nagar, Dhaka-1207, Bangladesh Phone: +80029183460 Jakarta- Indonesia Office 35C, Office 8. Lot 28 SCBD JI.Jend. Sudirman Kav 52/53 Senopati, Jakarta 12190 Phone: +6221 29 333 468 Fax: +6221 29 333 464 Dakar – Senegal Office ITFC - IDB Group 18 boulevard de la République BP 6253 Dakar - Étoile -Sénégal Phone: +221 33 889 1144 Regional Office Rabat. Avenue Ennakhil , Hay Riad 10 104 Rabat, Morocco. Tel: +212 5 37 54 88 00 ITFC Branch - Dubai P.O. Box 123336, Dubai, United Arab Emirates Phone: +971 4 2555934 Fax: +971 4 2954698

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اركش! Thank you ! Merci !

This presentation issued by ITFC is confidential. If you are not the intended recipient, please do not read or copy this document or any part of its contents or take any action in reliance on it. It is expressly understood that any promotional material is directed exclusively at Qualified Investors or Partners. This presentation gives a general outline of the terms and is not intended to be comprehensive. Furthermore nothing in this material constitutes investment advice

• r an offer or solicitation for the purchase or sale of any financial instrument or as a confirmation of services transactions.

International Islamic Trade Finance Corporation (ITFC) A member of the Islamic Development Bank Group Jeddah, Kingdom of Saudi Arabia Tel : +966 (12) 646 8337 Fax : +966 (12) 637 1064

FOR ADDITIONAL INFORMATION PLEASE CONTACT : Anisse Terai, Head – Policy and Partnerships : aterai@isdb.org / +971 425 559 34 Abdouramane Diallo, Senior Associate – Policy and Partnerships : abdouramanediallo@isdb.org / +966 (12) 646 8393