Islamic Development Bank (IDB)

IDB chief urges EU not to repeat mistakes of the past

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 affirms IDB’s rating

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.

Egypt gets $400 mln from Islamic trade financier

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.

Turkey’s Islamic Bank gets $75 million from IDB

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 bank to help develop Waqf properties in India

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 affirms 'Aaa' rating for IDB

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.

IDB governors demand urgent action on IF promotion

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.

IDB rate of return triple that of Gulf bonds

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.

Roadshow success for Islamic Development Bank

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.

Islamic Development Bank issues $750 mln 5-year Sukuk

Islamic Development Bank, or IDB, gave out a $750 million five-year, benchmark sukuk with a price guidance of 35 basis points over mid-swaps.
One of the banks that is leading the sale told Dow Jones that BNP Paribas SA, Deutsche Bank AG, HSBC Holdings PLC and Standard Chartered Bank were joint bookrunners on the transaction.

Islamic Development Bank plans dollar bond

Islamic Development Bank (IDB) is going to issue a benchmark dollar-denominated Islamic bond. So far they have limited to government-linked and high-rated bonds.
Arrangers are : BNP Paribas, HSBC, Standard Chartered and Deutsche Bank.

ICD signs SPA with Indonesia Eximbank

The Islamic Cooperation for the Development of the Private Sector (ICD) has signed a Strategic Partnership Agreement (SPA) with Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank), to explore together investment opportunities in Indonesia and other IDB member countries. This SPA was signed by Khalid Al-Aboodi, CEO of ICD, and I Made Gde Erata, CEO of Indonesia Eximbank .
This will also allow for the private sector in Indonesia to expand into emerging markets, especially to other OIC countries.

Saudi investors, Turkey pledge to invest in Bosnia

Saudi investors voted to begin investing in Bosnia with a starting capital of $50 million. Turkey announced that it will extend credit lines for infrastructure projects.
The Islamic Development Bank (IDB), Al Baraka BARKA.BH banking group and other Saudi investors have formed a joint investment company for Bosnia that tries to help Bosnia in its process of development.

IDB lends $3bn to Pakistan

Pakistan will recieve $3bn from IDB for infrastructure, energy, agriculture, education and health projects. This is the largest commitment for IDB in the 35 years of partnership. This what soever doesn't mean that IDB will support the government of Pakistan budgetary.


ICIEC board approves capital increase

The board of directors of ICIEC approved a proposal to increase its capital increase, at its 62nd meeting held at the Islamic Development Bank headquarters.
The meeting, held under the chairmanship of Ahmed Mohammed Ali, gave approval to increase the ICIEC capital resources from ID150 million ($240 million) to ID400 million ($640 million).

IDB joins hands with AfDB to boost development

Last week in Jeddah was signed a memorandum of understanding (MoU) between the Islamic Development Bank (IDB) and the African Development Bank (AfDB) to cooperate in co-investment in projects in member countries mutual to both multilateral development banks (MDBs).
The two MDBs will commit to contribute $500 million each in a $1 billion cooperation spanning three years starting in 2011 and based on the AfDB's medium term strategy and the IDB special program for the development of Africa (SPDA), whose main focus is to assist in scaling-up interventions in Africa in agriculture, infrastructure, water and sanitation, education and healthcare.

Fitch Affirms Islamic Development Bank at 'AAA'; outlook stable

Fitch Ratings has affirmed Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' and its Short-term IDR at 'F1+'. It seems that the Outlook for the Long-term IDR is stable.
IDB's non-equity portfolio includes a large proportion of speculative-grade counterparties. Exposure to credit risk is mitigated by strict internal country and counterparty limits, and by preferred creditor status, which grants the bank priority over other creditors in a sovereign default.

IDB establishes an investment holding company in Turkmenistan

Through its member organization Islamic Corporation for Development of the Private Sector (ICD), the Islamic Development Bank (IDB) has started replicating the schemes tested in co-operation with Azerbaijan.
The IDB reports that ICD general manager Khaled Al-Aboodi and chairman of the State Bank for Foreign Economic Affairs of Turkmenistan Ragimberdi Jepbarov signed the Memorandum of Understanding (MOU) on development co-operation.
The Memo has a focus on the development of the private sector, especially small- and medium-size enterprises, financial sector, agriculture, logistics, construction of affordable housing, services and manufacturing industries. The IDB will also render technical assistance and consultations within the framework of Islamic financing.

Saudi sukuks seen doubling next year, says Saudi Hollandi

Saudi firms may launch 10 Islamic bonds, or sukuk, in 2011, more than double their number this year, but they will be dominated by private placements.
Key factors that will spur demand for Saudi sukuk issues will be a low interest rate environment in Saudi and Dubai World's restructuring accord with 99 percent of its bank lenders as well as Dubai's successful $1.25bn conventional bond issue in late September.
Saudi Arabia has had four sukuk issues this year so far, Nisar said, but declined to comment on the expected size of issues and only cited Jeddah-based Islamic Development Bank (IDB) and an Aramco-Total joint-venture as being among the prospective issuers.
The interest rate environment in Saudi Arabia -- the main repo interest rate stands at two percent -- might seem discouraging for prospective sukuk buyers.

World Bank launches $1b Mena infrastructure plan

The World Bank Group, in partnership with the Islamic Development Bank (IDB), is setting up a regional initiative that could raise up to $1 billion to close the Mena infrastructure gap, which will undermine the region's growth if not addressed.
Private sector investment in infrastructure in Mena countries is limited, especially outside the Gulf countries, despite huge unmet demand for infrastructure services.
The $1 billion initiative aims at addressing this shortfall through a regional investment vehicle to support both conventional and Sharia-compliant investment in infrastructure.

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