04
Operational
Delivery Effectiveness
In 2022, ITFC’s disbursements exceeded approvals and reached a record amount of US$ 7.38 billion, up by 42 % from the previous year.
This figure reflects the Corporation’s capacity and commitment to meet the urgent and increasing financing needs of Member Countries amidst a widespread rise in commodity prices in 2022. Approvals were also up by 4% YoY, reaching US$ 6.81 billion in trade financing through 102 transactions benefitting 21 countries. The disbursement ratio reached 1.08 in 2022 compared to 0.8 in 2021.
The average tenor of ITFC operations reached a record 10.5 months in 2022, up from 9.6 months in 2021. The duration of ITFC’s financing is made at 93% in the short term (less than 2 years), with 43% financing for up to one year. Only 7% of the transactions have tenors of 2-3 years maximum. The upward trend in the average tenor, particularly since 2020, is an indicator of ITFC’s consideration to progressively extend tenors to respond to clients’ challenges and meet their financing requirements.
ITFC financing
Since its creation, ITFC has approved US$ 68.5 billion of trade financing while cumulative disbursements reached US$ 57.5 billion
In a context of tight resources and increasing demand, ITFC has leveraged its internal resources to meet immediate needs, while maintaining a solid resource mobilization ratio.
In 2022, ITFC mobilised US$ 4.45 billion from Syndicate Partners in the market, a similar figure to the previous year, despite challenging market conditions. An additional US$ 738 million was mobilised from within the IsDB Group through the Mudaraba Fund. These funds accounted for 76.2 per cent of the total trade financing provided by ITFC in 2022, slightly below the share of 79.5 per cent registered in 2021. ITFC funding was up 21% YoY, reaching US$ 1.62 billion.
Resource Mobilization - Trade Finance
For every dollar approved by ITFC, an additional 3.9 dollars are mobilized from partners.
Islamic Financing
League Table
Top Bookrunner and MLA
2022: #2
2021: #1
Islamic Finance
League Table
Top Bookrunner and MLA
2022: #1
2021: #1
As a recognition to the institution’s leadership catalytic role in Islamic finance, ITFC has been ranked by Refinitiv as the Top Bookrunner and leading Mandated Lead Arranger in Global Islamic Financing league tables. ITFC also ranked among the Top 2 Bookrunner and MLA on the Bloomberg Islamic Financing League Tables
The share of Intra-OIC trade remains predominant in ITFC’s portfolio, thereby contributing to the positive trend in Intra-OIC trade. The share of Intra-OIC trade remains predominant in ITFC’s portfolio, thereby contributing to the positive trend in Intra-OIC trade.
Since its creation, ITFC has been contributing to the positive trend in Intra-OIC trade by extending US$ 48.9 billion of financing for Intra OIC trade. In 2022, ITFC provided US$ 4.9 billion to finance trade between OIC member countries, up by 22 per cent compared with 2021. Intra-OIC trade in the ITFC portfolio rose to 72 per cent in 2022 from 62 per cent in 2021.
Intra OIC trade financing
Since inception, ITFC has extended US$ 48.9 billion of financing for Intra OIC trade
Portfolio management
The energy sector remains predominant in ITFC portfolio, while diversification efforts were boosted by a sharp increase in the food and agriculture disbursements.
The disbursements in the energy sector increased by 9% YoY, reaching US$ 4.2 billion. However, the share of the energy sector represented only 60% of the total disbursements, against 75% in 2021. The Agrifood and financial services sectors rose respectively by 114% and 86% YoY. The food and agriculture now represent 31% of the portfolio against 20% in 2021 and only 6% in 2018. This is an indicator of the growing importance of food security related matters in Member Countries.
Sector financing (as share of total disbursements)
From a geographical perspective, two thirds of ITFC disbursements were allocated to Africa while the remaining was destined to Asia. However, on a country basis, ITFC’s portfolio remains concentrated in a limited number of member countries. About 60% of ITFC’s total disbursements were allocated to two member countries. ITFC remains committed to expanding its client base and penetrating new markets, a strategy that will deliver a broadly balanced portfolio from a geographical perspective.
Tier IV - Results
Operational Performance
Indicator
Source
Baseline (2017)
Results (2021)
Results (2022)
YoY trend
Delivery Effectiveness
| Indicator | Source | Baseline (2017) | Results (2021) | Results (2022) | YoY trend | |
|---|---|---|---|---|---|---|
|
Approvals. Trade Finance |
Corporate database | 4,243 | 6,524 | 6,812 | ||
|
Disbursements, Trade Finance |
Corporate database | 3,462 | 5,185 | 7,383 | ||
|
Tenor, Average |
Corporate database | 7.3 | 9.6 | 10.6 | ||
|
External resources mobilized, (share of portfolio) |
Corporate database | 78.7 | 79,5 | 76,2 | ||
|
Disbursement (share of approvals) |
Corporate database | 82 | 80 | 108 | ||
|
External resources mobilized, (share of portfolio) |
Corporate database | 78.7 | 79,5 | 76,2 | ||
|
Intra-OIC trade, share of portfolio |
Corporate database | 88 | 62 | 72 | ||
|
Intra-OIC, volume of financing (US$ billion) |
Corporate database | 4.3 | 4 | 4.9 | ||
|
Approvals generated by regional hubs (share) |
Corporate database | 48 | 60 | 91 | ||
|
Employee engagement score (/10) |
Staff survey | --- | 8.7 | 8.8 |
Portfolio Management
| Indicator | Source | Baseline (2017) | Results (2021) | Results (2022) | YoY trend | |
|---|---|---|---|---|---|---|
|
Non-petroleum trade, share of portfolio |
Corporate database | 41 | 25 | 40 | ||
|
New clients, number |
Corporate database | 7 | 9 | 10 | ||
|
Disbursements Asia (share of portfolio) |
Corporate database | 57 | 44 | 32.5 | ||
|
Disbursements Africa (share of portfolio) |
Corporate database | 43 | 56 | 67.5 | ||
|
Number of operations |
Corporate database | 54 | 95 | 121 | ||
|
Number of Member countries served |
Corporate database | 19 | 22 | 23 |
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