Frequently Asked Questions
What is ICD? What is the difference between ICD and the Islamic Development Bank?
ICD is a member of the Islamic Development Bank, which consists of five closely associated institutions that are owned by member countries. Each plays a distinct role in helping fight poverty and improve lives. ICD promotes economic development through private sector. Working with business partners, ICD invests in sustainable private enterprises in developing countries without the need for government guarantees. ICD also offers advisory services to support private sector development. Most of these activities are funded in partnership with member countries; many involve close collaboration with the Islamic Development Bank.
What services does ICD offer?
ICD provides a wide range of investment and advisory services that help businesses and entrepreneurs in the member countries meet the challenges they face in the marketplace. ICD offers innovative and Sharia Compliant financial products to private sector projects in the member countries. These include loans for ICD's own account (also called A-loans), long and short termfinancing, equity and quai-equity financing and syndicated loans (or B-loans). ICD often provides funding to financial intermediaries that on-lend to clients, especially small and medium enterprises, also called line of finance. ICD also provides advisory services that help build businesses, create full fledge banks or Islamic windows and financial institutions, but also government, especially for issuing sovereign Sukuk. ICD can provide a mix of financing and advisory services that is tailored to meet the needs of each project. But the bulk of the funding, as well as leadership and management responsibility, lies with private sector owners and investors.
How many member countries does ICD have to date?
As of FY20, ICD had 55 member countries.
How does a country become a member of ICD?
To join ICD, a country must be a member of OIC ; have signed ICD's Articles of Agreement; and have deposited with the Islamic Development Bank Group's Corporate Secretariat an Instrument of Acceptance of ICD's Articles of Agreement.
Can I obtain a mortgage loan from ICD to buy a property? Or can I open a personal bank account at ICD?
No, ICD is a financier of development projects and not a retail bank.
Who can apply for ICD financing?
ICD invests in private enterprises: companies, financial institutions, and other businesses that are majority-owned by the private sector and that operate in ICD's developing member countries. ICD usually does not lend directly to micro, small, and medium enterprises or individual entrepreneurs, but many of our investment clients are financial intermediaries that on-lend to smaller businesses. Many of ICD's investments are provided in combination with advisory services.
What types of financing does ICD provide?
In partnership with other investors, ICD provides clients with financing and intermediary services, participations, equity and structured finance.
Does ICD provide grants to individual companies?
ICD provides a limited amount of grant funding to business initiatives that innovate in specific practice areas: biodiversity, sustainable energy, and corporate responsibility. Such grants are typically provided in much smaller amounts than ICD's investments, and the funding is intended to help recipients demonstrate the commercial viability of new approaches to sustainability.
I represent a private investor. Can we invest in ICD?
ICD seeks partners for joint ventures and raises additional financing by encouraging other institutions to invest in ICD projects. Resource mobilization—catalyzing funds from private investors and lenders for private sector projects in developing countries—is one of ICD's most essential functions. The bonds that ICD issues to fund its operations are also an opportunity for investors; see investor information. ICD does not issue stock; it is owned by its member countries, each of which provided share capital when joining ICD.
Are there criteria my project must meet to be eligible for financing?
Yes. To be eligible for ICD funding, a project must: • Be located in a member country of ICD • Be in the private sector • Be technically sound • Have good prospects of being profitable • Benefit the local economy • Be environmentally and socially sound, satisfying ICD environmental and social standards as well as those of the host country
Which sectors/industries ICD will consider for financing?
Visit the website of ICD's expertise areas to learn about the industries that qualify for ICD financing. The ICD Exclusion List defines the types of projects that ICD does not finance, including those that are non-Halal, hazardous to the environment or harmful to human health and well-being.
Is my country eligible to receive ICD financing?
• To receive ICD funding, the project must benefit a developing country that is a member of ICD.
What is the range of ICD's investments?
The volume of ICD financing for a project is in the range of $ 5 to 15 million with a minimum financing amountof $ 2 million. The maximum amount of ICD financing (from its own resources) for a specific project is 50% ofthe total project investment cost, if the project is an expansion of an existing company or project and 40% of theproject investment cost if it is a new or greenfield project. All financing is in US Dollars.
Are there guidelines for preparing and submitting an investment proposal?
There is no standard application form for ICD financing. A company seeking to establish a new venture or expand an existing enterprise can approach ICD directly. This is best done by reading About ICD Financing, and by submitting an investment proposal directly or through the application form in the website.