Non Honoring of Sovereign Financial Obligation insurance policy

The policy protects the lender against losses resulting from the failure of an Arab sovereign or sub-sovereign entity to make a payment due under an unconditional financial payment obligation or guarantee. This includes a direct payment obligation of the government, or a government guarantee of the obligations of a state owned enterprise or a public/private joint venture. When they buy NHSFO insurance, lenders transfer the risk from the borrowing entity to DHAMAN, an AA- Stable Outlook S&P rated insurer. Since NHSFO is Basel II compliant, it allows lenders to receive capital relief and to continue funding projects in DHAMAN’s member countries.
NHSFO is available for tenors of up to 15-20 years and the compensation rate is up to 95% of principal and interest.

Procedure

  • NHSFO insurance Application

    The Loan provider submits a free of charge Insurance Application

  • Non-Binding Insurance Quotation

    Dhaman provides the applicant with a non-binding indication detailing the scope of cover and the pricing

  • Host country approval

    Obtaining the host country’s approval is necessary for Dhaman in order to issue the insurance policy

  • Issuance of the Insurance Contract

    “Dhaman” provides the applicant with the insurance terms and conditions and policy is signed

  • Insurance Application

    Before the investment is committed, the applicant submits a free of charge Preliminary Insurance Application. Dhaman provides the applicant with a non-binding indication detailing the scope of cover and the pricing. Once the investment and financing plans are established, a Definitive Application for which a fee is charged is submitted along with the project documentation.

Contact info

  • Maram K. Tubaileh Investment Guarantee Unit

  • +965 24959538 (Direct)
  • maram@dhaman.org