The Islamic Corporation for the Development of the Private Sector (ICD) and African Export-Import Bank (Afreximbank) sign First-ever Line of Financing agreement
December 25, 2017
|The USD 100-million line of financing facility will be utilized by Afreximbank to provide Shariah-compliant financing to small and medium-sized enterprises (SMEs) in its member countries in Africa|
JEDDAH, Kingdom of Saudi Arabia, December 24, 2017/ — The Islamic Corporation for the Development of the Private sector (ICD) (www.ICD-ps.org) and the African Export-Import Bank (Afreximbank) (www.Afreximbank.com) signed a Line of financing agreement for a USD 100-million facility.
The USD 100-million line of financing facility will be utilized by Afreximbank to provide Shariah-compliant financing to small and medium-sized enterprises (SMEs) in its member countries in Africa. Afreximbank has a solid pipeline of projects in the industrial, communication, technology, healthcare, construction and agricultural sectors that would be financed by the ICD Line of financing.
On this occasion Mr. Khaled Al Aboodi, CEO of ICD, commented: “The proposed financing facility is a token of a good partnership between ICD and Afreximbank, with the purpose of supporting private sector businesses with a Shariah compliant facility structure in our common African member countries”.
“This facility will give a boost to our effort to implement our current strategy which prioritizes intra-African trade; intra –African investments and export manufacturing of the labour intensive type,” said Mr Amr Kamel, Executive Vice President at Afreximbank. “It will also promote our knowledge in Islamic finance and provide us with additional manoeuvring capacity in terms of product offerings to our clients.”
“We are delighted that ICD has chosen to partner with us in the pursuit of Africa’s trade development. This collaboration will contribute to, the objective of fostering sustainable economic growth in the member countries of our two institutions, leading to job creations, contribution to export and Islamic finance development, among others,” Mr. Kamel added.
The key economic and financial developmental impact will be, but not limited to; developing private sector, especially SMEs, to help expand the real economic growth based on value creation, and promoting Islamic Finance based on the pipeline of AFREXIMBANK projects. The Line of Finance facility is also expected to have an impact on Sustainable Development Goals (SDGs) in line with ICD’s strategic objectives.
The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments, which are in accordance with the principles of Shari’ah. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s.
The African Export-Import Bank (Afreximbank) (www.Afreximbank.com) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors. Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved more than $51 billion in credit facilities for African businesses, including about $10.3 billion in 2016. Afreximbank had total assets of $11.7 billion as at 31 December 2016 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.
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