| June 27
June 27 The private sector arm of the Islamic
Development Bank announced a flurry of initiatives this week and
hopes to advise on the mandate for Pakistan's $1 billion Islamic
bond, which would cap a landmark year for the Jeddah-based
The Islamic Corporation for the Development of the Private
Sector (ICD) and Karachi-based Burj Bank have applied to be
advisers on the sovereign deal, meeting with Pakistan's finance
ministry earlier this week.
A ministry statement also said that it would review the
applications starting next week.
ICD holds a 33.9 percent stake in Islamic lender Burj Bank,
as part of its mandate to finance private sector projects across
its 51 member countries.
Established in 1999, the ICD has been implementing a new
strategy to help widen the appeal of Islamic finance by
establishing banks, leasing companies and insurers that
following Islamic principles.
Earlier this week, ICD signed separate agreements to help
develop Islamic leasing businesses in Malaysia and Uzbekistan,
as well as extending $5 million in financing to support SME
lending in the former sovier state.
On Wednesday, ICD signed an agreement with the Vienna-based
OPEC Fund for International Development to jointly develop the
private sector in their common countries of operations.
On Thursday, the ICD announced plans to help develop a
special economic zone in Sierra Leone, its first intitative in
that African country.
Africa represents around 12 percent of the ICD's cumulative
investment approvals since inception, and its chief executive
told Reuters in April that it expected this figure to rise in
coming years as projects come on line.
Earlier this year the ICD teamed up with Tunisia's newly
created sovereign wealth fund, Caisse de Depot de Tunisie, to
set up a $30 million fund to support local businesses.
In March, it tied up with Casablanca-based Al Ajial Funds, a
unit of sovereign wealth fund Kuwait Investment Authority, to
invest in Morocco's private sector.
Senegal-based Tamweel Africa Holding, jointly owned by the
ICD and Turkey's Bank Asya, is establishing Islamic banks in
Benin and Mali.
(Editing by Kim Coghill)