ICD extends $50m Islamic financing to three Nigerian banks

Nigerian banks, Wema Bank, Jaiz Bank and SunTrust Bank sign $50m financing agreement with Islamic Corporation for the Development of the Private Sector

The Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD) has extended a combined $50 million in financing to three Nigerian lenders, aiming to help channel funds to local businesses.

The ICD, the private sector arm of the Islamic Development Bank, has in recent years sought to expand its activities across Africa, home to a quarter of the world’s Muslims.

The multilateral body said it had signed financing agreements with Jaiz Bank, SunTrust Bank and Wema Bank worth $20 million, $10 million and $20 million respectively.

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The funds would be extended to small- and medium-sized businesses in sectors including health, technology, manufacturing and agriculture, the ICD said.

The ICD has previously extended financing of $120 million for Nigerian businesses, while advising several African governments on their plans to issue Islamic bonds, including Senegal, Nigeria and the Ivory Coast.

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is part of the Islamic Development Bank (IDB) 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.

ICD has an authorized capital of $4 billion. Currently, the shareholders of ICD are the IsDB, 53 Islamic countries and five public financial institutions.

ICD fosters sustainable economic growth in its 53 member countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to business and governments.

ICD financing projects are selected on the basis of their contribution to economic development considering factors such as job creation, Islamic finance development, contribution to exports etc.

ICD also provides advisory services to governments and private sector groups on policies designed to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices

and to enhance the role of the market economy. ICD operates to complement the activities of the IDB in member countries and also that of national financial institutions.