Annual Report 2020

2020 has been an eventful year, to say the least. The emergence of COVID-19 is precipitating new and unprecedented knock-on effects on economies and livelihoods across the globe which will, unfortunately, leave deep and lasting scars. International evidence has shown that countries have widely disparate levels of ability to respond to the crisis, with marginalized and underserved groups and communities hit the hardest by persistent inequality. As the magnitude of the impact becomes more apparent in the time to come, ICD’s mission of supporting and developing the private sector as a powerful engine for inclusive growth and stability has never been more relevant, or more urgent. Despite the demanding global circumstances, 2020 staged a positive shift for ICD’s operations, with total approvals improving from USD 147.5 million in the previous year to USD 306.6 million. We also disbursed USD 136.04 million, with the largest allocation channeled to financial institutions in the form of a line of finance, with micro, small and medium enterprises (MSMEs) as of end beneficiaries. This is a testament to our heightened commitment to serving the private sector, especially during these difficult times. 

ICD is a multilateral organization affiliated with the Islamic Development Bank (IsDB). Its authorized capital stands at USD 4 billion, of which USD 2 billion is available for subscription. Its shareholders consist of the IsDB, 55 member countries, and five public financial institutions. Headquartered in Jeddah, ICD was established by the IsDB Board of Governors during its 24th annual meeting held in Jeddah in Rajab 1420H (November 1999).

The mandate of ICD is to support the economic development of its member countries by providing financial assistance to private sector projects in accordance with the principles of Shari’ah, aimed at creating employment opportunities and enhancing their export potential.

In 2020, ICD extended the fourth facility under a USD 50 million Syndicated LOF facility to PT Mandala Multifinance Tbk (PT MMF). ICD contributed a new facility to the value of USD 20 million and the remaining USD 30 million is planned to be arranged through syndication on a best-effort basis. The Line to PT MMF will be mainly used to finance assets to be sold or leased to Indonesian SMEs with substantial developmental impact in the following sectors: agribusiness, bio-technologies, education, financial services, manufacturing, healthcare, IT and multimedia and power. The financing of projects will be done in line with Shari’ah principles and in accordance with ICD’s eligibility criteria.

From the very beginning of the COVID-19 pandemic, the Islamic Development Bank (IsDB) Group demonstrated a concerted response with a pledge of USD 2.3 billion in funding to be channeled to our member countries. Consequently, as part of the Group’s efforts, ICD swiftly earmarked USD 250 million of emergency funding to support existing and new clients who could demonstrate a clear impact on their businesses due to the pandemic. By facilitating recovery and strengthening the resilience of MSMEs, we aim to, as best we can limit economic losses, protect jobs, and set strong foundations for renewed economic growth in our member countries.

During 2020, ICD capitalized on its established network of partnerships which include multilateral development banks, development finance institutions, sovereign wealth funds, financial institutions, central banks, and technical advisors. The development of the private sector through the provision of financing solutions and the contribution to the SDGs are key priorities for ICD. Throughout 2020, ICD has identified several partners with similar mandates and objectives and has established strategic partnerships and forms of collaboration that will help us achieve lasting synergies.