IsDB and ICD Sign Agency Agreement to Implement R2 COVID Support Line of Finance
Jeddah, Kingdom of Saudi Arabia, 14 February 2021 – President of Islamic Development Bank (IsDB) Dr. Bandar Hajjar, and CEO of the Islamic Corporation for the Development of the Private Sector (ICD), Mr. Ayman Sejiny, have put their signatures to an Agency Agreement for the implementation of IsDB Group’s R2 COVID Support Package, which will assist IsDB Group Member Countries to restore their economies and recover from the negative impacts resulting from the ongoing COVID-19 pandemic.
The Agency Agreement is a manifestation of the IsDB President’s vision to improve intra-group collaboration and create room for cooperation with other multilateral development banks (MDBs) and international finance institutions (IFIs). It is also in line with ICD’s new strategic direction which gives utmost importance to synergy and partnership with other IsDB Group Entities and other MDBs.
On this occasion, Dr. Hajjar stated: “Today, we set the tone for a new type of intra-group cooperation beyond the IsDB’s R2 program. By agreeing on a clear accountability framework assigning roles and responsibilities between IsDB and ICD, we are on the path of mainstreaming group synergies, which will help us go beyond our limits. As the private sector arm of the Islamic Development Bank Group, ICD will continue to make important contributions to the development of small and medium enterprises (SMEs) sector in our Member Countries through the dedicated line of finance facilities.”
He further added: “This agreement is the foundation upon which we will work together as one Group to implement IsDB's new business model and further achieve the President’s 5-year Program (P5P) vision.”
Mr. Sejiny commented: “We consider this initiative an important milestone in intra-group collaboration and expansion of our partnership with Member Countries, MDBs, IFIs and a wider community of private sector businesses as the backbone of sustainable growth. The successful implementation of this Agency Agreement will help us introduce many other initiatives on the same platform”.
Under the Agency Agreement, ICD is offering its expertise in the implementation of R2 “Restore Program” COVID-19 Support in the area of Line of Finance transactions.
The Corporation will further strengthen its relationship with governments of Member Countries, which will open doors for future cooperation opportunities and policy dialogues for the promotion of Islamic Finance/Banking and support private sector development and job creation. Moreover, where possible, ICD will mobilize additional resources from the market leveraging on its network and syndication skills.
About the Islamic Development Bank Group
The Islamic Development Bank (IsDB) is a multilateral development bank (MDB) working to improve people’s lives by promoting social and economic development in its 57 Member Countries (MCs) and Muslim communities worldwide, delivering impact at scale. Through collaborative partnerships, IsDB seeks to equip people and communities to drive their own economic and social progress at scale, putting the infrastructure in place to enable them to fulfill their potentials thereby touching the lives of 1 in every 5 of the world’s population.
The Bank’s New Business Model of “Making Markets Work for Development” contributes to strengthening the competitiveness of the MCs in strategic industries for better participation and upgrading within the Global Value Chains including food and agribusiness industry, the textiles, clothing, leather, and footwear industry, the petrochemicals, and petroleum industry, the construction industry, and Islamic finance.
IsDB also fosters innovative and sustainable solutions to the world’s greatest development challenges, leveraging the potentials of science, technology, and innovation (STI) as strategic drivers of economic growth spearheading the achievement of the UN Sustainable Development Goals (SDGs).
Rated AAA by the three major rating agencies of the world, the IsDB is headquartered in Jeddah, Kingdom of Saudi Arabia, and runs major regional hubs in Bangladesh, Egypt, Indonesia, Kazakhstan, Morocco, Nigeria, Senegal, Suriname, and Turkey as well as centers of excellence in UAE and Malaysia.
Over the years, the Islamic Development Bank has evolved from a single entity into a group (IsDB Group) comprising five entities: Islamic Development Bank (IsDB), the Islamic Research and Training Institute (IRTI), the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the International Islamic Trade Finance Corporation (ITFC).
About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a member of the Islamic Development Bank (IsDB) Group. ICD was established in November 1999 to support the economic development of its Member Countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies, and encouraging cross border investments. The Corporation is Rated A2’ by Moody’s, ‘A-’ by S&P and, A+ by Fitch. It establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. It also applies financial technology (Fintech) to make financing more efficient and comprehensive.