МЕЖДУНАРОДНАЯ ИСЛАМСКАЯ КОРПОРАЦИЯ ТОРГОВОГО ФИНАНСИРОВАНИЯ JUNE 15, 2015 KAZAN, RUSSIA

Islamic Development Bank Group Structure Established in AAA rated by S&P, Moody’s and Fitch Copyright © ITFC 2014

1 SOMETHING ABOUT US SERVING MEMBER AND NON-MEMBER COUNTRIES 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 Shari’ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. Our primary focus is to encourage more intra- trade among OIC Member Countries

OUR VISION 2 “ITFC is to be a recognized provider of trade solutions for OIC member countries’ needs”

OUR MISSION 3 “We exist to be a catalyst for the development of trade among OIC member countries and with the rest of the world ”

WHERE WE OPERATE 2 56 Member Countries MENA Sub-Saharan Africa Asia Central Asia

OUR CORE COMPETENCIES SOLUTIONS FOR IMPACT PREFERRED CREDITOR STATUS AAA RATING RICH HERITAGE TECHNICAL EXPERTISEGEOGRAPHIC PRESENCE Structured Trade Finance SMEs/LDMCs 56 member countriesMember of IDB Group Over 30 years of experience in trade finance/promotion & cooperation Originator, Structurer & Arranger 56 member countries in 4 continents 3

TRADE APPROVALS 4 Total approvals in 2015 are expected to exceed the US$6.2 billion Since inception in 2008, ITFC’s cumulative funded financing reached to US$ 29 billion. From TFPD to ITFC, the cumulative trade approvals reached up to US$52 bn (US$ million)

TCPP BUSINESS LINES DEVELOPMENT OF STRATEGIC COMMODITIES TRADE MAINSTREAMING TRADE PROMOTIONTRADE FACILITATIONCAPACITY BUILDING Development of competitiveness in the export sectors in which there are comparative advantages Place trade on the work agenda of countries, institutions, local and regional organizations since trade has a positive and effective impact on economic development. Promoting trade and trade cooperation among member countries to enable them to participate in the process and to take advantage of globalization Facilitating trade by promoting economic integration between member countries and the removal of trade barriers and improve trade infrastructure Strengthening human and institutional capacities and support sustainability of national trade sources between member countries 12

FINANCING MECHANISMS 1.Direct Financing: Financing is extended directly from ITFC’s own resources through a Murabaha Agreement between ITFC and the Beneficiary 2.Two-Step Murabaha: ITFC provides Two-Step Murabaha Financing to local Financial Institutions or commercial banks to be extended to SMEs 5 ITFC may also participate in syndications arranged by other institutions

FINANCING MODES 6 > Import Financing: Murabaha > Pre-Export Financing: Murabaha, Istisna’ > Export Financing: Murabaha > Structured Financing

DIRECT FINANCING (1) A Murabaha financing agreement is signed between ITFC and the beneficiary - Other parties may co-sign the agreement (2) ITFC makes payment of purchase price directly to the Supplier (3) The beneficiary repays the sale price directly to ITFC ITFC takes the direct credit risk of the beneficiary. 7 Beneficiary (2) Shipment (1) Murabaha Agreement (3) Payment of Purchase Price (4) Sale of Shipment (5) Repayment of Sale Price at Maturity

CASE STUDIES FINANCING WITH DEVELOPMENTAL IMPACT 10 COFFEE FINANCING IN INDONESIA Exporter Off takers Farmers/ Cooperatives

WHAT IS STRUCTURED TRADE FINANCE Alternative → to conventional payment guarantee (Gov’t/Bank/Corp) Innovative Asset Backed financing → More Secure Source of Repayment → Transaction Cash Flow (Self-Liquidating Transaction) Transferring Credit Default Risk → Performance Risk (Collateral, Market Risk, Documentation & Business Operational Risk) 8

COFFEE FINANCING IN INDONESIA Direct Payment to Farmers & Cooperatives Cooperatives represent 2.2k farmers Payment against delivery of coffee beans to warehouse / no more selling on deferred basis Overcome the issue of lack of financing in local market 11

AWARDS 30

RUSSIA-OIC TRADE 9 Source:

RUSSIA-OIC TRADE 9 Source:

RUSSIA’S EXPORTS TO OIC 9 Source:

RUSSIA’S EXPORTS TO OIC (CONT) 9 Source:

RUSSIA’S IMPORTS FROM OIC 9 Source:

RUSSIA-OIC TRADE 9 Source:

RUSSIA-OIC TRADE 9 Opportunities for Trade Financing: -Substantial Trade turnover exceeding USD91b -Trade in strategic goods (cereals, aluminum, ores, fertilizers) -Huge potential to grow ITFC role and potential: -Mandate to serve the international trade financing needs of Member Countries -Commodities expertise -Financing instruments -Import financing, -pre-export and -export financing -Continuous new product development

THANK YOU! СПАСИБО ЗА ВНИМАНИЕ !