Icd corporate profile march 2012 - Financiamento do Banco Islâmico de Desenvolvimento (BID)


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Mocambique: Documentos para o acesso de financiamento do Banco Islâmico de Desenvolvimento (BID)

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Icd corporate profile march 2012 - Financiamento do Banco Islâmico de Desenvolvimento (BID)

  1. 1. THE PRIVATE SECTOR ARM OFTHE ISLAMIC DEVELOPMENT BANK GROUPIslamic Corporation for the Development of the Private SectorMember of Islamic Development Bank (IDB) GroupFebruary 2012
  2. 2. Table of ContentsSection 1: OverviewSection 2: ICD Business LinesSection 3: Case Studies 1
  3. 3. 1. Overview
  4. 4. Overview: Mission and Vision The Islamic Corporation for the  The Vision of ICDis to be a major player in the development of promotion of Development of the Private the private as a vehicle for economic and social growth and prosperity in Sector (ICD), is the private sector Islamic countries arm of the Islamic Development  The Mission of ICD is to complement the role played by IDB through Bank (IDB), a multilateral  Providing Islamic financial services and products development finance institution  Promoting competition and entrepreneurship in member countries  Advising governments and businesses IDB, headquartered in Jeddah, Saudi Arabia, is a USD 50bn+  Encouraging cross border investments bank with 56 member countries mainly located in Asia, Middle East and Africa ICD was established in 1999 with an authorized capital of USD 2bn and a membership of 52 countries. It is 50% owned by IDB, 20% by public financial institutions and 30% by the member countries 3
  5. 5. Overview: ICD Member Countries Central & East & South South MENA West Africa CIS & Europe East Africa Asia America1. Algeria 1. Benin 1. Albania 1. Cameroon 1. Bangladesh 1. Suriname2. Bahrain 2. Burkina Faso 2. Azerbaijan 2. Chad 2. Brunei3. Egypt 3. Gambia 3. Kazakhstan 3. Djibouti 3. Indonesia4. Iran 4. Guinea 4. Kyrgyzstan 4. Gabon 4. Malaysia5. Iraq 5. Guinea 5. Tajikistan 5. Sudan 5. Maldives6. Jordan Bissau 6. Turkmenistan 6. Mozambique 6. Pakistan7. Kuwait 6. Ivory Coast 7. Uzbekistan 7. Uganda8. Lebanon 7. Mali 8. Turkey 8. The Comoros9. Libya 8. Niger10.Mauritania 9. Nigeria11.Morocco 10.Senegal12.Palestine 11.Sierra Leone13.Qatar14.Saudi Arabia15.Syria16.Tunisia17.U.A.E18.Yemen 4
  6. 6. Overview: ICD Goals & Strategic ObjectivesICD strategic objective is to promote private sector by: helping create jobs; providing Islamicfinancing capabilities in all member countries; and providing access to financing. 1440 Vision ICD Goals  1 million jobs created  1 – 2 channels (financial institution investments) per country by 1440  1 million low income families with access to finance  3,000 enterprises per channels (SME through to corporations in key sector)  50 Islamic finance channels created / developed  10,000 retail users per channel  Enabling environment in 10 member countries (micro enterprises and lower income families)  70% of resources from the market  1 direct investment per country by 1440 (in sectors outside financial services) 5
  7. 7. 2. ICD Business Lines
  8. 8. ICD: Developing Islamic BanksICD extends its own reach by setting up, investing, financing and providing expert advice to otherIslamic Banks in its Member Countries. Focus of Islamic Banks Tamweel Africa Formerly Dawood Islamic Bank Holding The objective is to develop Islamic Financing Channels by USD 28.21 M USD 35.3 M USD 13.1 M promoting and developing financial institutions. These Equity Equity Equity institutions acts as financial channels for ICD and provide a Financial Sector Financial Sector Financial Sector Pakistan Senegal Yemen multiplier effect on the investment dollars 2006, 2008, 2010 2005, 2006, 2007, 2011 2010 The focus is to develop the market by establishing and investing Islamic Bank Islamic Bank Islamic Bank in the following type of institutions through control and non- of of of Niger Mauritania Guinea control positions: USD 2.2 M USD 26.3 M USD 2.6 M Equity Equity Equity • Islamic Banks Financial Sector Financial Sector Mauritania Financial Sector Niger Guinea • Ijara Companies 2008, 09 2008, 09 2008, 2009 • Takaful Companies • Mortgage Companies Islamic Bank of Senegal USD 3.0 M USD 3.4 M Equity Equity Financial Sector Financial Sector Senegal Sudan 2008 2003, 2005, 2008 7
  9. 9. ICD: Developing Islamic Financial InstitutionsICD extends its own reach by setting up, investing, financing and providing expert advice to otherIslamic Financial Institutions in its Member Countries. Focus on Islamic Financial Institutions Taiba Leasing Azerbaijan Leasing Co. ICD also invests in other Islamic Financial Institutions in order to USD 4.9 M USD 5.0 M USD 6.2 M promote the development of Islamic Finance as a viable Equity Raising Equity Equity Financial Sector alternative to conventional finance Sole Placement Agent Financial Sector Azerbaijan in KSA Uzbekistan 2010 2009 2009 As with banks, investing in these financial institutions will have a multiplier effect and increase the total assets in Islamic products Sukuk Arab Leasing & Exchange in member countries Investment Company Center USD 6.0 M USD 10.0 M USD 0.75 M Currently, there is a lack of such Institutions in the Islamic Equity Equity Equity countries and Sharia compliant FIs are needed to finance private Financial Sector Financial Sector Financial Sector Bahrain Saudi Arabia Sudan sector 2006 2008 2008 The objective is to go beyond basic banking and develop non- banking FIs (e.g. Ijara, takaful) and continue to provide the market Asean Retakaful with access to innovative Islamic products USD 1.1 M USD 3.0 M Equity Equity Financial Sector Financial Sector UAE Malaysia 2005 2005 8
  10. 10. ICD: Provision of Lines of Finance Lines of Finance ICD also provide Lines of Global Line of Financing Global Line of Financing Global Line of Financing Global Line of Financing Global Line of Financing Bangladesh Azerbaijan Tajikistan Uzbekistan East-Asia Financing to institutions in order to meet common USD 50.0 M USD 40.0 M USD 10.0 M USD 50.0 M USD 42.0 M business and social objectives Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector especially the small and Bangladesh Azerbaijan Tajikistan Uzbekistan East Asia medium enterprise (SME) 2011 2010 2010 2009 2008 sector PT Mandala Multi Global Line of Financing Finance Kyrgyz USD 8.0 M USD 3.5 M USD 2.0 M USD 1.0 M USD 4.0 M Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector Indonesia Yemen Uzbekistan Uzbekistan Kyrgyz 2008 2007 2006 2006 2006 USD 2.0 M USD 3.0 M USD 4.5 M USD 800,000 USD 1.7 M Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector Mauritania Mauritania Azerbaijan Azerbaijan Azerbaijan 2005 2003 2003 2003 2003 9
  11. 11. ICD: Direct Equity InvestmentApart from investments in financial institutions, ICD supports the development of member countriesby investing in companies seeking capital expansion. Scope of Services Sectors Healthcare & Industrial & Telecom & Selective Greenfield and Operating Companies Other Sectors Pharmaceutical Manufacturing Technology investments that have a strong equity story with a potential of major development benefits USD 69.0 M USD 10.0 M USD 10.0 M USD 25.5 M Equity Raising & Equity Equity Underwriting Healthcare Cement Telecommunication Real Estate Equity investment can be through capital Saudi Arabia 2008 Saudi Arabia 2010 Sudan 2005, 2010 Indonesia 2008 increases or buyouts Al-Laali Real Estate AGCM Development Industries Types of equity investments: USD 25.0 M Equity USD 5.3 M Equity USD 6.0 M Equity USD 4.8 M Equity • Plain Equity Real Estate Mauritania Healthcare Saudi Arabia Industrial Algeria Technology Egypt • Quasi-equity 2008 2005, 2008 2007 2004, 2005 • Hybrids (convertible) Gabas Global Glass Containers Biotechnology Company (GCC) Company USD 60 M USD 10.0 M USD 4.8 M USD 2.5 M ICD added value through active participation in Equity Raising & Underwriting Equity Equity Equity Pharmaceutical Industrial Sector Telecommunication Sector the companies’ boards to support business Yemen Saudi Arabia Egypt Yemen 2005 2007 2002 2002 effectiveness and corporate governance USD 10.7 M USD 4.02 M USD 12.5 M Equity Equity Equity Pharmaceutical Industrial Manufacturing Technology Jordan Regional (Jordan) Regional (UAE) 2005 2001 2000 10
  12. 12. ICD: Provision of Term FinancingICD extends Term Finance to clients for capital investments aiming at expansion of existingenterprise, establishment of a new enterprise and project implementation. Scope of Services Sectors ICD provides term financing for Greenfield and Other Sectors Healthcare & Pharmaceutical Industrial & Manufacturing Telecom Brownfield projects in healthcare, Yemeni Saudi infrastructure, ICT and industrial sectors Horizon Fisheries Project Cement Company (Batais) USD 20.0 M USD 6.0 M USD 27.5 M USD 10.0 M Healthcare Industrial & Manufacturing Telecommunication ICD can act as an underwriter, lead arranger or Food & Fisheries Maldives Kuwait Yemen Syria participant in such term financing projects 2009 2007 2008 2002 TAB Rig The average size of such financing is between Company US$ 10 -20 million with a tenure of 4-7 years USD 43.0 M USD 13.0 M USD 25.0 M USD 10.0 M Oil & Gas Healthcare Industrial & Manufacturing Telecommunication Libya Saudi Arabia Pakistan Yemen Minimum size of US$ 5m 2008 2006 2005 2002 Middle East Queenex Paper Term finance can be provided through: Royal Atlantic Residence Healthcare Company Products Company • Non-recourse borrowing (project USD 13.0 M USD 10.0 M USD 26.9 M USD 12.0 M Real Estate Industrial & Manufacturing Healthcare Telecommunication finance) Gambia Saudi Arabia UAE Sudan • With-recourse borrowing 2007 2000 2004 2001, 2004
  13. 13. ICD: Provision of Short-Term FinancingICD provides short-term financing for companies where cash flow from operations is not sufficient tokeep up with their growth-related financing needs. Scope of Services Sectors Providing liquidity to corporations with Healthcare Real Estate Oil & Gas Industrial & Manufacturing development benefit to its country USD 5.0 M USD 5.0 M USD 5.0 M USD 14.0 M The tenure for short-term loan can be up to 2 Healthcare Real Estate Oil & Gas Industrial & Manufacturing years Saudi Arabia Saudi Arabia Bangladesh Syria 2007 2009 2009 2004, 2007, 2008, 2009 Yemen Steel This facility can be provided through: Al-Shiddi Real Estate Company PT Dimas Utama (Geothermal Project) Manufacturing Company Ltd. • Trade finance USD 5.0 M USD 5.8 M USD 6.0 M • Working capital Real Estate Oil & Gas Industrial & Manufacturing Saudi Arabia Indonesia Yemen • Bridge finance 2009 2008, 2009 2007, 2009 Canadian Engineering Western Co. USD 5.0 M USD 5.0 M Oil & Gas Industrial & Manufacturing UAE Jordan 2004 2005, 2007 USD 5.0 M Industrial & Manufacturing Jordan 2005
  14. 14. ICD: Advisory ServicesICD has put together a team of highly experienced investment bankers to support Advisorytransactions. Making available of its full resources to ensure a successful outcome of any transactionit undertakes. Scope of Services ICD provides a wide variety of advisory services to governments, USD 100 M Murabaha Financing Facility public entities and private entities of member countries in order Restructuring & Capital Raising Joint Lead Arranger to help create the right environment to facilitate private sector Financial Advisor Financial Advisor investment and also to assist companies in achieving their 2011 2011 potential Range of Services for Government Government of Senegal • Privatization USD 590 M USD 200 M • Public Private Partnership (PPP) Project Finance Advisory Structuring & Placement Sukuk Issuance Agent • Government Sukuk Capital Raising Financial Advisor Financial Advisor • Development of Islamic Capital Markets 2011 2010 • Development of Business Environment for SME Range of Services for Private Sector • Strategic Advisory / Restructuring Advisory USD 11.7 M USD 460 M • Access to Growth Capital Setting Up The Bank, Equity Raising Equity Raising • Project Finance Advisory & Underwriting Financial Advisor Financial Advisor • Development of Islamic Financial Institutions 2010 2010 13
  15. 15. ICD: Asset ManagementICD establishes and develops specific Financial Instruments to support the growth of targeted sectorsin its member countries. Scope of Services Renewable Energy SME Fund Fund ICD supplements its own balance sheet by sponsoring / creating private (to be launched) (to be launched) equity funds as well as other special purpose vehicles in order to provide the USD 250 M USD 250 M IDB Group and other investors with access to projects that provide Energy Sector All Sector commercial returns as well as meet the developmental needs of member Renewable Energy Investments SME Investments In Member Countries In Member Countries countries 2012 2012 ICD acts as a fund manager and/or general partner with other fund managers to sponsor and create special purpose vehicles along with third party ICD Housing UIF investors including but not limited to IDB and ICD; other Multilateral Development Fund (Unit Investment Fund) (to be launched) Agencies; Sovereign Wealth Funds; Government Funding Vehicles and High USD 500 M USD 250 M Net Worth Individuals Investments in Member Real Estate Sector Countries Affordable Housing Investments Regional Types of Funds In Member Countries  Medium and Short Term Working Capital Funds 2012 1995  Energy Funds  Infrastructure Funds (Project Finance and Equity)  Food and Agriculture Funds  Real Estate Funds (Middle Income and Affordable Housing)  SME Funds 14
  16. 16. 3. Case Studies
  17. 17. Case Studies Case Study 1: Mukalla Steel Mill in Yemen Case Study 2: Djibouti Bulk Terminal Port Case Study 3: Tamweel Africa / Government of Senegal Sukuk Case Study 4: SME Funding through Lines of Finance Case Study 5: Middle Income Housing 16
  18. 18. Case Study: Enhancing Development via Arranging / Financing ICD acted as a lead arranger and financier for the construction of a steel mill plant in Mukalla, Yemen Project Sponsors The total project cost was a US$ US$ 48mn of 172mn out of which the ICD led term financing consortium contributed US$ 48mn in with equal term financing contribution from the US$ 124mn of three equity syndicate financing members ICD was able to bring in two development funds to participate in the syndication, with all three parties contributing US$ 16mn each:  OPEC Fund for International Development  Arab Fund for Economic and Social Development The result of construction of the steel mill in Mukalla, Yemen resulted in much needed capacity for steel to be used in Yemen and the creation of 700 new jobs 17
  19. 19. Case Study: Promoting Infrastructure Development via Financing ICD partnered with African Development Bank to fund the construction of a US$ 30mn bulk terminal port in Djibouti with ICD and ADB providing the necessary term Project financing for the project Sponsors US$ 10mn of term financing The terminal was built to handle with US$ 6mn contribution approximately 1.0 million tons of from African fertilizer and grain a year and covers a Development 42,000 square meter in Port US$ 20mn of Bank and the Autonome International, and is equity remaining financing from ICD managed by SDTV out of Djibouti The facility is designed store and process (unloading / bagging / loading) of cereals and fertilizers for export to Ethiopia and sub-regional markets The result of the project was to lower the landed cost of food and agriculture input products In Djibouti and Ethiopia by reducing turn-around time and expediting delivery of goods 18
  20. 20. Case Study: Developing Islamic Finance via Investing / Arranging In order to develop the Islamic Financing market in Western Africa, ICD embarked on investing in and/ or 60% 40% establishing Islamic banks in the region ICD partnered with Bank Asya in Turkey to create a holding company, Tamweel Tamweel Africa that would not only Africa invest and manage stakes in Islamic 50.5% 68.8% 50.0% 100.0% Banks but also provide the necessary synergies and scale to grow an Islamic Banking platform Islamic Bank of Islamic Bank of Islamic Bank of Islamic Bank of Niger Senegal Guinea Mauritania ICD invested US$ 33mn for a 60% stake in Tamweel Africa, which further invested in three banks in Niger, Senegal, Mauritania and US$ 200mn Sukuk for the Government of Senegal to provide Guinea liquid Islamic Products for the banks to invest ICD is also advising the Government of Senegal on a US$ 200mn Sukuk issue, thus providing the banks with Joint Advisors and Arrangers of the Sukuk liquid Islamic products for investing 19
  21. 21. Case Study: Promoting SME Development via Line of Finance 1 ICD’s disburses line of financing against guarantees from the financial institutions INVESTORS 2 Financial institutions disburse medium term financing to SMEs for expansion, working capital, etc. 4 3 SMEs pays their medium term financing and the financial institutions will repay ICD for the line of financing 4 Other investors may participate in the line of financing by appointing ICD as the Investment Agent. 1 As a result of this ICD helped to:  Expand SME lending in the CIS and South East Asia regions3 2 3 2 3 2  Provide financing to 54 SMEs in five member countries (Azerbaijan, Kyrgyz Republic, Tajikistan, Uzbekistan and Mauritania) and over 5,000 SME Clients SME Clients SME Clients motorcycles were financed by PT Mandala Multifinance for the use of small family businesses in Indonesia 20
  22. 22. Case Study: Providing Middle Income Housing (Multi-Prong Strategy) ICD owns a stake in ICD owns a stake in ICD has embarked on a mission to an investment a specialized facilitate the development of middle banking and asset mortgage finance income housing in its member management regional advisory countries through a multi-pronged company in KSA company strategy that allows it capitalize on its Seed Investor Seed Investor relationship with investors, governments and developers Advisor / Fund Manager ICD has played the role of advisor, Advisor / Arranger Advisor / Manager Advisor / Fund to MFC to MFC venture investor, real estate investor, Manager fund manager and facilitator in order to achieve the desired objectives of Al-Fareeda Seed Investor Mortgage FundMiddle cou Finance providing housing to the middle Company income segment by not only Income ICD owns stakes in Housing Fund Banks developing the housing but by Provides real estate providing a reliable financing development Mortgages to End structure for developers and end Provides Funding Users companies to to Projects users promote its objectives In addition, ICD also works with governments to assist in putting Housing together the framework necessary to Developer End User Projects facilitate the development of the industry in different countries Develops and Buys House in Funds Projects Projects 21
  23. 23. THANK YOU 22