Our Operations

In 2023, ICD’s work helped SMEs grow and innovate while improving access to Islamic finance. This section presents case studies to showcase our impact.

 

Supporting Bangladesh’s economic expansion through Islamic finance

Bangladesh has witnessed significant strides in poverty reduction alongside sustained economic growth. However, prevailing economic conditions pose challenges, particularly for the private sector, jeopardizing the country’s years of developmental progress. As a result, ICD strategically employed Islamic finance as a pivotal tool, fostering innovative and accessible avenues for private sector financing with the goal of empowering and bolstering the sector’s resilience and stimulating sustainable growth.

 

Ground-breaking local currency financing partnership in Kazakhstan

In 2023, ICD marked a significant milestone by extending its inaugural local currency Line of Finance (LOF) of 2.0 billion Kazakhstan Tenge (KZT) (equivalent to USD 4.4 million) to “Leasing Group” JSC in Kazakhstan. This transaction operated under the first local currency Sukuk Programme in KZT, established as part of ICD’s resource mobilization initiative to bolster its LOF operations in Kazakhstan and promote private sector development in the country.

 

Providing access to Shari’ah-compliant funding for private sector enterprises in Egypt

In 2023, ICD expanded its financial support by offering a new LOF facility to Al Baraka Bank Egypt (ABBE) within a syndicated financing arrangement totaling up to USD 50 million. ICD contributed USD 30 million and assumed the role of Lead Arranger and Investment Agent of the syndicated facility.

 

Expanding support to Guinea’s private sector through BCI-Guinea financing initiative

In 2023, ICD extended a USD 10 million line of financing facility to Banque pour le Commerce et l’Industrie Guinée (BCI-Guinea) in Guinea.

BCI Guinea is utilizing the extended facility to provide financial assistance and fortify Guinea’s private sector, particularly small and medium-sized enterprises (SMEs), in eligible sectors. The bank has presented a pipeline of potential eligible projects totaling USD 20 million, indicating its significant absorption capacity.

 

ICD’s strategic financing initiative supports Egypt Kuwait Holding Company’s expansion plans and share acquisitions

In May 2022, the ICD Board approved a USD 40 million Shari’ah-compliant financing for six years to Egypt Kuwait Holding (EKH) to support its expansion, particularly for the subsidiary North Sinai Concession (NSCO). However, EKH deferred the transaction due to increased liquidity from divestments and improved performance in the fertilizer and energy segments. Recently, EKH renewed interest in the financing discussion to support 2023 initiatives, including share acquisitions in Bawabat Al Kuwait Holding (BKH) to increase ownership beyond the existing 71.67% stake.

This marks EKH’s maiden venture into Shari’ah-compliant financing, which, given its size and treasury operations, may bolster future demand for Sukuk and other Shari’ah-compliant financial products.

ICD approves full exit from Islamic Bank of Guinea (BIG)

ICD’s investment in the Islamic Bank of Guinea (BIG) dates to 2009 when ICD management made a strategic decision to acquire shares of BIG from the Darul Maal Islami Trust. ICD initially acquired a 50.01% stake in the Bank and, through subsequent capital injections worth USD 8.8 million, came to own 68.45% of the bank. ICD’s shares in BIG were transferred to Tamweel Africa Holding in 2009.

ICD approved a full exit of BIG in 2023 after achieving core strategic and developmental milestones. The proposed divestment is the result of ICD’s continuous effort in rebalancing its equity portfolio in a timely manner as per the Board-approved Exit Policy, by taking into consideration both financial and developmental objectives.

Other Key Achievements in 2023

first local currency sukuk and LOF deal in Kazakhstan

first LOF deals in Benin and Togo

Publication of the ICD-LSEG Islamic Finance Development Report 2023

first infrastructure deals in Malaysia and Senegal

Six Joint Lead Manager mandates

Publication of the ICD-Refinitiv OIC Infrastructure Outlook 2023:
Creating Opportunities, Enhancing Linkages

ICD rating outlook improved from
“negative” to “stable”

Fast facts