BAKU, Azerbaijan, May 15. Kazakhstan's KazakhExport national company and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB), signed a facultative reinsurance agreement, Trend reports via the press service of KazakhExport.
As part of the signed document, ICIEC reinsured the risk of non-fulfillment/improper fulfillment of obligations under financial leasing agreements on the territory of Azerbaijan. The share of transferred risks amounted to 70 percent or about 1.9 billion Kazakh tenge ($4.2 million).
In addition, as the press service of the ICIEC noted, the signing ceremony was held in Jeddah, Saudi Arabia, on the sidelines of the IsDB Group Annual Meetings, by Oussama Kaissi, CEO of ICIEC, and Aslan Kaligazin, CEO of KazakhExport.
The transaction involves the financial leasing of TE33A ‘Evolution’ type mainline locomotives to Azerbaijan Railways for a tenor of 36 months. The document covers the commercial risk of the project under the relevant leasing agreement.
Currently, there is an obligatory reinsurance agreement between KazakhExport and ICIEC. The amount of transferred obligations under the agreement is more than 4.2 billion Kazakh tenge ($9.3 million). The agreement covers the risks of 21 banks in Uzbekistan, Tajikistan, Kyrgyzstan and Mongolia.
