ICD Support African Economic Development.
The Saudi Arabia-based Islamic Corporation for the
Development of the Private Sector (ICD) aims to raise $1 billion for a new
sharia-compliant fund that will focus on infrastructure projects across Africa.
Development of the Private Sector (ICD) aims to raise $1 billion for a new
sharia-compliant fund that will focus on infrastructure projects across Africa.
The plan follows a shareholder agreement signed between
the ICD, the private sector arm of the Islamic Development Bank , and the
private equity arm of India’s Infrastructure Leasing and Financial Services
Group.
the ICD, the private sector arm of the Islamic Development Bank , and the
private equity arm of India’s Infrastructure Leasing and Financial Services
Group.
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| ICD members at a strategic investment signing ceremony. Photo credit: ICD |
The fund will launch with 105 million dollars in seed
capital and expects to close its initial round of fundraising in the first half
of the year, the ICD told newsmen.
capital and expects to close its initial round of fundraising in the first half
of the year, the ICD told newsmen.
The fundraising effort was expected to take approximately
18 months after the first round was closed, the ICD said.
18 months after the first round was closed, the ICD said.
Power and transport would be the main sectors for the
fund, which would finance small to mid-sized projects in ICD member countries,
with a focus on Africa.
fund, which would finance small to mid-sized projects in ICD member countries,
with a focus on Africa.
The ICD, established in 1999, supports the economic
development of its 53 member countries. In recent years it has sought to widen
the appeal of Islamic finance across Africa, home to a quarter of the world’s
Muslims.
development of its 53 member countries. In recent years it has sought to widen
the appeal of Islamic finance across Africa, home to a quarter of the world’s
Muslims.
The ICD has advised several African governments on their
plans to issue Islamic bonds, or sukuk, with Senegal, Nigeria and Ivory Coast
among those that have tapped the market.
plans to issue Islamic bonds, or sukuk, with Senegal, Nigeria and Ivory Coast
among those that have tapped the market.
Last month the ICD extended a 100-million dollar
financing facility to the Cairo-based African Export-Import Bank
(Afreximbank).(Reuters/NAN)
financing facility to the Cairo-based African Export-Import Bank
(Afreximbank).(Reuters/NAN)