The Islamic Development Bank (IDB) has given its approval for a loan worth $710-million to implement four projects in Iran. The agreement was reached in the sidelines of the IMF annual meeting in Tokyo. The money will be used for the establishment of treatment plants at upstream areas around dams and rural regions, thus assuring prevention from environment pollution.
This month Islamic Development Bank (IDB) issued a US$500m five-year sukuk. This is a rare example of a privately-placed transaction from this institution. Market data show that the deal was priced at 30 basis points (bps) over the three-month London interbank offered rate. The issuance is prat of bank's US$6.5bn sukuk programme.
A Memorandum of Understanding (MoU) has been signed by the World Bank and the Islamic Development Bank (IDB). It will provide a framework for collaboration between the two parties and support global, regional and country efforts in the development of Islamic Finance. The common objectives of the two banks include fostering, encouraging, and studying the expansion of Islamic finance worldwide. Some of the leading principles of the MoU are sharing knowledge sound practices in the Islamic financial services industry and cross fertilization of ideas.
The International Islamic Trade Finance Corporation, which is affiliated with the Islamic Development Bank, is giving Egypt a loan worth US$1.2 billion in total. The loan aims to provide basic and strategic commodities. The second part of this loan, US$330 million, is being prepared by several local and regional banks. It is intended to be used for importing wheat and food commodities.
In accordance with his tendency to use his fortune to solve global problems of the world’s underprivileged, Bill Gates has turned to Islamic Development Bank (IDB). The Bill and Melinda Gates Foundation has signed an MOU with IDB which aims to fight communicable disease and food insecurity in poor countries. In a five-year plan established by the MOU, projects concerning agricultural development, malaria prevention and elimination as well as polio eradication will be worked on. Third World countries included in the plan are Pakistan, Afghanistan and Nigeria.
Islamic Development Bank intends to finance projects worth 1 billion USD in Kasakhstan, thus implementing the country strategy. At the beginning of October a new country strategy of the bank in Kazakhstan will be signed. According to plan, in the following 2 years IDB will provide financial means for a number of projects.
Islamic Development Bank (IDB), based in Jeddah, is willing to spend almost $1 Billion USD for development projects in a number of countries. The sum of $912.8 million USD will be used for projects regarding water, energy, food and security in countries in Africa, the Middle East and Central Asia.
The Asian Development Bank (ADB) has engaged in its first Shariah-compliant project financing, offering assistance to two projects to build wind farms close to the port city of Karachi, exploiting two partial credit guarantees valued up to $66 million to the Islamic Development Bank (IDB).
The Fauji Foundation, which is the majority stake holder in the two projects had demanded that all financing be acquired in compliance with Shariah principles, so ADB used an innovative structure in which it supplied a partial credit guarantee to half of the IDB financing.
The IFC and the Islamic Development Bank (IDB) will support the construction of major infrastructure projects across the Middle East and North Africa through an investment of up to $100 million.
The investment is an attempt to stimulate economic growth in the MENA region.
According to the IFC, countries in the Middle East and North Africa must invest aproximatly $70 billion annually in infrastructure to keep up their growth rates.
The export credit and investment insurance arm of the Islamic Development Bank (IDB) has secured more than $3bn (Dhs11.02bn) of business deals in 2011. The value of deals insured bounced 63% from 2010.
The flow was ascribed to the launch by ICIEC of new insurance products for political risk.
The Islamic Development Bank (IDB) revealed some plans to invest $98 million for the implementation of bilingual education in Nigeria.
The funds will be used in supplying support for the integration of Quranic schools into western education. The bank’s decision is focused at improving enrolment in schools, most especially for the girl child.
Before stating its developmental plans for Nigeria, the president of the bank, Dr. Ahmad al-Madani, corrected the notion that the bank is a religious institution.
Ahmad Mohamed Ali, the president of the Islamic Development Bank (IDB), has given notice that the euro zone sovereign debt crisis is adversely affecting the Bank's member countries and urged European leaders to find the right solutions and not to repeat the mistakes of the past.
He explained at the "Islamic Finance on the 21st Century" symposium which was held in Madrid on Dec. 1 that Turkey, Morocco, Tunisia and Algeria are very much affected as exports begin to decline because of the credit crunch and economic situation in the European Union (EU).
Fitch Ratings has just confirmed the IDB’s Long-term Issuer Default Rating at ‘AAA’ with a Stable Outlook and Short-term IDR at ‘F1+’. Mostly the excellent rating shows the risk level of the Shari’ah compliant work that IDB does and its lack of exposure to collapsing asset classes around the world.
IDB’s capital is owned by 56 countries, which are all members of the Organisation of the Islamic Conference. The main shareholder is Saudi Arabia (‘AA-’/Stable), which owns 24.6% of callable capital.
It appears that the trade financing arm of the Islamic Development Bank (IDB) has offered $400 million to help Egypt finance imports of petroleum products, wheat and other foodstuffs.
The funds were given by IDB's International Islamic Trade Finance Corporation.
Turkye Finans Participation Bank was given $75 million line of finance by Islamic Development Bank (IDB). An agreement was signed by IDB Group President Dr. Ahmad Mohamed Ali with one of Turkey’s largest Islamic Banks. This proccess took place at the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul.
The agreement brings long term financing opportunities to small and medium enterprises in Turkey through Installment Sale, Ijara and Istisna’a modes of Islamic finance.
Islamic Development Bank (IDB) is enthusiastic to evolve Waqf properties in India and the two sides have investigated ways to cooperate in different fields including launching of Islamic banking in the country.
It seems that the bank has agreed to finance not only Waqf properties in India but also to develop seven Rubaats (Haj shelters) in Makkah for pilgrims' accommodation.
Moody's Investors Service reaffirmed Islamic Development Bank for the sixth consecutive year "Aaa" long-term and P-1 short-term foreign currency issuer rating with a "stable" outlook.
In Moody's oppinion, IDB reflects the presence of strong shareholder support, a high level of liquidity, the tested preferred creditor status and a low level of debt partly because of the Islamic (asset-backed) nature of its operations that makes it unique among MDB's.
The 36th Annual Meeting of the Board of Governors of the Islamic Development Bank (IDB) didn't came with a crucial answer at a time when many of its member countries are experiencing drastic challenges to their political and economic governance.
It seems that some member countries continue to live in self-denial, while some others attend these meetings as civil service and diplomatic tourists who see the IDB Group as a mutual admiration club. Only a few countries who are on top of their brief are trying to confront the problems their countries and the IDB as a group are faced with.
The reason for the fact that rate of return on Islamic Development Bank’s Shariah-compliant bonds sold last month was triple that of Gulf sukuk is that investors looking to own the highest rated debt sold this year.
Islamic Development is rated AAA, the highest investment grade, at Moody’s Investors Service, Standard & Poor’s and Fitch Ratings.
Islamic Development Bank (IDB) conducted a roadshow in Asia, the Middle East and Europe. This is part of a resource mobilization plan.
The roadshow began in the UAE and reached London where the bank has successfully priced, $750 million, 5-year, Trust Certificates (sukuk) issued at par with a 2.35 percent semi-annual profit rate under its $3.5 billion Trust Certificate Issuance Program.