Third party guarantees for sukuk set to take off

At the 36th annual board of governors meeting held in Jeddah last month, there was one positive result that stood out: the approval by the Board of Directors of the Islamic Corporation for the Insurance of Export Credit and Investment (ICIEC), the standalone export credit and political risk insurance agency of the IDB Group, of the corporation's capital from the current $240 million to $640 million.
ICIEC had an obvious gain: the capital increase would substantially increase its underwriting and reinsurance capacity.
It was confirmed by Abdel Rahman Taha, CEO, that ICIEC is still reviewing the feasibility of launching the LC Guarantee Fund, and are in discussions with some partner institutions on the structure and objectives of the fund.

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