AI Issue 6 2017

58 Acquisition International - June 2017 The Islamic Corporation for the Development of the Private Sector (“ICD”) is a multilateral development financial institution and a subsidiary of the Islamic Development Bank (“IDB”) Group. Established in 1999, ICD currently has an authorized capital of USD 4 billion and a membership of 53 countries. ICD supports the economic development of its member countries through the provision of finance for private sector projects as well as advisory services to governments and businesses. Currently, the shareholders of ICD are the IDB, 53 Islamic countries and 5 public financial institutions. ICD is rated ‘AA/ FQ ’ by Fitch, ‘Aa3/P-1’ by Moody’s, and ‘A+ by Standard & Poor’s. andate and Objectives Themandate of ICD is to complement the role played by IDB and national financing institutions of member countries. This is achieved through the provision of Islamic financial services and products to private sector projects in accordance with the principles of Sharia’a. ICD’s mandate also includes promoting competition and entrepreneurship in member countries, and encouraging cross border investments. In addition, ICD provides consultancy services to governments and private sector institutions in order to encourage the establishment, the expansion and the modernization of private sector enterprises, the development of capital markets, the adoption of best management practices and the enhancement of the role of market economy. ICD’sprimaryfocus isthefinancingofdevelopmental projects which contribute to the creation of employment opportunities and the encouragement of exports. To achieve these objectives, ICD creates and develops collaborative partnerships to arrange co-financing and syndicated financing services. ICD’s Strategic Orientation ICD is focusing on the development of what is called “Islamic Finance Channels”, designed to widen the reach of Islamic financial products and services with the objective of contributing significantly to the developmental goals of member countries. This will be achieved substantially through the setting up of Islamic Banks, Investment and Ijarah Companies, Takaful and Re Takaful companies in member countries. ICD is pioneering many aspects of Islamic finance and sees its role as being a powerful vehicle for economic and social growth, and overall prosperity. ICD’s Activities ICD started its operations in July 2000 and has financed projects in agriculture, construction, education, finance, fishing, health care & pharmaceutical, oil & gas, real estate, technology, telecoms, trading, transportation, power generation and has made investments in over 30 member countries. ICD’s activities are centred on four strategic focus areas: • Developing Islamic financial channels in order to create multiplier impact. Company: The Islamic Corporation for the Development of the Private Sector (“ICD”) Email: [email protected] Website: www.icd-ps.org Address: P.O. Box 54069 Jeddah 21514, KSA Phone: (966-12) 6361400 (966-12) 6441644 Fax: (966-12) 644 4427 Banking on Success M 1704AI41 • Providing advisory services for establishing Islamic finance windows and converting conventional financial institutes into Islamic organizations. • Providing finance for investments in high impact sectors and helping governments by providing advisory services in privatization, Sukuk issuance, and structuring project finance deals. • Improving its partnership with IDB Group and other MDBs and heavily leverage internal and external partners to go beyond its own resources. ICD Products and Services 1- Long and Short-term Financing ICD finances private sector entities and greenfield or expansion projects directly through equity participation, the purchase of assignable bonds and term financing. ICD also extends short-term finance to cover working capital and/or raw materials requirements of private sector entities through Murabaha or Purchase and Leaseback for a tenor of up to 24 months. ICD can also play a role in mobilizing resources for financing a project through co-financing or syndication. 2- Developing Islamic Financial Institutions and Extending Lines of Finance. ICD strives to nurture and empower identified channel partners, by setting up or aiding existing development banks in driving development and growth in the Islamic world. This vertically leverages two key instruments in order to extend financial aid: Institutional Equities and Lines of Finance. 3- Advisory Services ICD provides a wide variety of advisory services to governments, public entities and private entities of member countries with an aim to create the ideal environment to facilitate private sector investment and also to assist companies in achieving their potential. The range of services include assessing the business environment of member countries, plus project finance advisory, raising funds though the issue of Sukuk, development of Islamic capital markets and encouraging the development of the business environment for SMEs.