Financing Financial Institutions
Line of Financing is an arrangement through which ICD extends a Sharia’s compliant line of financing for a specified amount to a FI operating in a member country to invest into Eligible Projects. Such Lines are approved especially to promote the growth and development of the private sector or other purposes authorized by ICD’s Articles of Agreement, Board of Directors, ICD’s Investment Policies and Guidelines.
Lines of Financing act as means to improve the access of private sector enterprises to term financing facilities and concurrently strengthening the balance sheet position of the beneficiary FIs.
Through Lines of Financing ICD expands its reach serving larger number of enterprises through the network of FIs operating in local markets and thus multiplies its developmental impact. At the same time ICD mitigates its risk leveraging on local Presence and knowledge of FIs and the security provided by beneficiary FIs.
In brief, main objectives of Lines of Finance include but not limited to:
Promotion of Islamic finance;
Expansion of reach and multiplying developmental impact of ICD;
Partnership development with FIs and benefiting from their network and market knowledge.
Facilitating access of private sector enterprises to medium-long term financing;
Strengthening financial position of the beneficiary FIs;
Supporting subsidiary/affiliate FIs of ICD that may have limited access to Sharia’s compliant financing.