The Islamic Corporation for the Development of the Private Sector (ICD) and IL&FS Investment Managers Limited (IIML) have signed a shareholder agreement to establish a US$1 Billion fund that will focus on infrastructure projects across Africa.

ICD, the private sector arm of the Islamic Development Bank Group (IsDB), and IIML, the private equity arm of IL&FS Group will collaborate to establish this Fund in order to finance small to mid-sized Infrastructure projects in the member countries with a focus in Africa.

The Fund will target mainly the power and transportation sectors and will promote integrated projects within Africa. It will be the first of its kind, financing fund following Sharia’h principles and targeting all the impactful sub-sectors within the Infrastructure sector, which includes healthcare, transportation, utilities, power and telecom industries. The aim of the fund is to finance commercially viable projects and deliver more sustainable and thus catalyzing infrastructure for private sector development mainly on the continent of Africa.

Khaled Al Aboodi, Chief Executive Officer of ICD explained:

“This strategic cooperation brings complementarity between our institutions to realize a common vision. A vision of providing demonstrable development impact through private sector intervention in, the much needed, infrastructure sector in Africa, which is in line with ICD and IsDB Group strategy.”

The ICD’s transactional experience in Nigeria includes USD$30 million participation in a USD$120 million syndicated financing facility in favour of Oku Iboku Pulp & Paper Company Limited (OKIPP). The ICD also extended a USD$100 million financing facility to the Cairo-based African Export-Import Bank (Afreximbank).