IDB places US$1 billion sukuk issue

The Islamic Development Bank (IDB) has successfully priced a US$1 billion five-year tranche of sukuk (trust certificates) issued at par with a 1.83% semi-annual profit rate under its US$10 billion Trust Certificate Issuance Program. The sukuk will be listed on the London Stock Exchange, Nasdaq Dubai and Bursa Malaysia under an Exempt Regime.

This is a significant achievement of IDB’s continued efforts in positioning itself closer to its supranational peers through important investor meetings across key hubs of Asia, and Middle East. IDB’s AAA ratings, strong financial position and commitment to support the liquidity of its sukuk, were other major reasons for the placement's success. 

CIMB, Dubai Islamic Bank, GIB Capital, HSBC, National Bank of Abu Dhabi, NCB Capital, Natixis, RHB Islamic Bank and Standard Chartered Bank acted as joint lead managers and joint book-runners, with the Bank of London and Middle East as co-manager.

The issue saw strong participation from investors across the Middle East, Asia and Europe with 50% allocated to MENA, 35% to Asia, and 15% to Europe. Of the issuance, 54% was allocated to central banks, 28% to other banks, 10% to fund managers and 8% to other investor types.

Dr Abdul Aziz Al Hinai, Vice President Finance, IDB, stated: “We hope that the lower cost of funding in spread terms will allow us to extend attractive financing terms to member countries towards meeting their development needs.”

Suppliers needed to execute on Arab Women's Enterprise Fund projects

A networking event for potential suppliers which can deliver on the Arab Women's Enterprise Fund (AWEF) programme has been set for March 18 for Jordan and the Occupied Palestinian Territories (OPTs).

The 10 million-pound fund aims to empower poor women in Egypt, Jordan and the OPTs, increase their income and well-being and ultimately improving their livelihoods and growth opportunities. The programme will do this by increasing their participation in markets through working with market actors to encourage the adoption of new practices and also by addressing constraints in the enabling environment. 

The UK Department for International Development (DFID) will work with the Islamic Development Bank (IDB) which will contribute an additional 10 million pounds in shari'ah-compliant concessionary finance through financial intermediaries. The tender for DFID's half of the programme is available at the DFID Supplier Portal. 

The AWEF Supplier Networking Google Site  is now live. Those interested to join can email roopa-hinton@dfid.gov.uk. More information on the networking event is available from m-sansour@dfid.gov.uk. 

Global Islamic Investment Gateway to bring Islamic opportunities to investors this March

A new event aimed at generating business in the Islamic finance sector has been introduced by the Islamic Development Bank (IDB) in conjunction with Thomson Reuters and supported by the Bahrain Economic Development Board (EDB).

The Global Islamic Investment Gateway was launched last month and aims to bring investors and cross-border Islamic investment opportunities in some of the world's fastest growing economies together. Decision makers from investment banks, sovereign wealth funds, investment companies and family offices of high net worth individuals are expected to attend.

The Global Islamic Investment Gateway is organised by Thomson Reuters and the IDB, through its Business Forum THIQAH. It will be held at the Gulf Hotel in Manama, Bahrain on March 2 and 3 under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, First Deputy Prime Minister and Chairman of the EDB, and His Excellency Dr Ahmad Mohamed Ali Al Madani, President of IDB Group.

It will be supported by an online portal which will collate international investment opportunities. The organisers are already collaborating with investment development agencies and investment originators in Islamic markets to obtain, review and standardise investment opportunities across sectors.

Organisation of Islamic Cooperation (OIC) markets are projected to grow at an average of 5.4% till 2019, significantly higher than the rest of the world (3.6%) and the high growth BRICS markets (3.9%). This increased economic growth is accompanied by a greater maturity in their financial markets, enabling greater involvement of private capital in their development.

His Excellency Dr Al Madani said: "The OIC economies are at the heart of the world's most rapid economic growth and Islamic finance provides an excellent chance to connect capital to exciting opportunities in these markets. This event can play an important role in making that process happen."

His Excellency Kamal bin Ahmed, Minister of Transportation and Telecommunications and Acting Chief Executive of Bahrain EDB said: "We are very proud to support this event in Bahrain. We are committed to the development of the international Islamic finance sector and event such as this, which will enable real investment in viable projects, can play a great role in the process."

Dr Sayd Farook, Global Head of Islamic Capital Markets, Thomson Reuters, said: "The Global Islamic Investment Gateway will be the premier event for any investor looking for access to opportunities in emerging and frontier Islamic markets. These markets have the value chains that have the potential to provide excellent returns for the capital in the GCC and this event will give investors the means to access them."

Hasan Al Jabri, Chief Executive Officer, SEDCO Capital said: "Other events have focussed on the intellectual issues around Islamic investment which are important but Global Islamic Investment Gateway is very focussed on linking real investors with real opportunities and facilitating actual business and we are very excited to be involved."

The event will feature over 30 OIC countries, split into the key regional sectors including GCC, MENA, CIS, Southeast Asia, South Asia, West Africa and Sub-Saharan Africa and will cover all major investment sectors, driven by the opportunities presented by the investment development agencies and investment originators.

Individuals can register their interest here. 

IDB opens country gateway office in Indonesia

The Islamic Development Bank (IDB) Group has opened a Country Gateway Office in Indonesia. Headed by Resident Representative Ibrahim Shoukry, the office will host senior professionals of all IDB Group private entities such as the Islamic Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

The Country Gateway Office will serve as a platform for all entities of the IDB Group to effectively identify and implement projects and programmes as well as expand cooperation particularly in transportation, energy and public-private partnerships. The Office will also manage IDB Group’s portfolio in Indonesia and support capacity development in Islamic finance and reverse linkages through the flagship programmes of Indonesia’s south-south and triangular cooperation*.

At the opening ceremony in Jakarta on 11 December 2014 Dr Ahmad Mohamed Ali, Chairman, IDB Group, called the launch of the office "a turning point in the IDB’s efforts to get closer to its member countries and stakeholders."

The office is timely given Indonesia’s historical and increasing role at the global level, and its strong relations with the IDB member countries, Dr Ahmad said, noting that Indonesia is the only Southeast Asian country and is only one of three OIC member countries in the G20. Indonesia also boasts the world’s largest Muslim population, he added.

Dr Ahmad also noted that Indonesia has initiated projects in Africa and Asia, including the improvement of domestic husbandry through artificial insemination in the Kyrgyz Republic. "In this regard, I would like to express my appreciation to the government of Indonesia for providing US$2 million for IDB’s Reverse Linkages initiative and Indonesia’s South-South Cooperation programme in 2014. This would set an example for wider replication of this mutually beneficial initiative of supporting the exchange of technical know-how among the IDB member countries," he said.

IDB has also worked with Indonesia and Saudi Arabia among other partners in providing relief for the Aceh tsunami under the OIC Alliance for Child Victims and reconstruction and development under Saudi Charity Campaign Program, with a total funding of US$74 million. "Looking forward, I trust that the Country Gateway Office will insha Allah be instrumental in further promoting and facilitating joint initiatives between the IDB Group and Indonesia," he said. 

Indonesia, with its sustained economic growth of over 5%, is developing Islamic finance too. "The IDB has supported the integrated development of the Islamic finance sector through various initiatives in key areas such as building the enabling environment for Islamic finance; establishing and promoting Islamic financial institutions such as providing equity of US$70 million (or 33% of total equity) in Bank Muamalat; establishing and supporting Islamic financial infrastructure institutions and contributing to the development of Islamic financial architecture in Indonesia. Currently, IDB is also developing mechanisms to support enhancement of financial inclusion by launching an Islamic microfinance fund," Dr Ahmad said.

Dr Ahmad closed his speech by calling for twinships to be established between Indonesian Chambers of Commerce and Chambers of Commerce in other member countries. "We would like to see more Indonesian trade fairs and exhibitions to be organised in other IDB member countries as well as other IDB member countries to be invited to arrange trade fairs and exhibitions in Indonesia," he said.

As of 2015, Jeddah-headquartered IDB has regional offices in Almaty, Kuala Lumpur, Rabat, and Dakar. The Indonesian country gateway office is its third after two country gateway offices in Turkey.

*These modes of cooperation are described here.

IDB approves financing for new round of development projects

The Board of Executive Directors of the Islamic Development Bank (IDB) has approved US$566 million for financing development projects.

The approvals covered many sectors including energy, roads, petrochemicals, water, education and health in favor of eight member countries, including Saudi Arabia and Lebanon.

In the energy sector the Board allocated US$220 million for the Egypt-Saudi Electricity Interconnection Project, which aims to facilitate supply of electricity from Saudi Arabia to Egypt and vice versa with a maximum capacity of 3000 MW.

In the petrochemicals sector the Board approved US$100 million for the Rabigh2 project under Saudi Arabia’s Refining & Petrochemical Company (Petro Rabigh). The project will allow to almost double the company’s petrochemical products’ output.

Two projects were approved in the transportation sector totaling US$116.5 million, including US$69.5 million for the Northern Highway Project in Lebanon, specifically the Tripoli Eastern Ring Road which is much needed to help relieve the highly congested roads in the Tripoli Metropolitan Area.

Dr Ahmad Mohamed Ali, President, IDB, approved US$300,000 for supporting the efforts of Sierra Leone government in combating Ebola.

In a separate announcement, it was reported that HE Almazbek Atambayev, President of the Kyrgyz Republic, expressed his appreciation to the Custodian of the Two Holy Mosques, King Abdullah Bin Abdulaziz, for financing five advanced mobile health clinics to be deployed in a number of rural areas in his country. This came at a ceremony in Makkah where, as part of his current visit to Saudi Arabia, President Atambayev graced the signing of the relevant agreement between Kyrgyz Foreign Minister HE Erlan Abdıldayev and Dr Ahmad Mohamed Ali.

The mobile health clinics project in rural areas of the Kyrgyz Republic is part of a US$266.5 million programme fully funded by the Custodian of the Two Holy Mosques and implemented by IDB for establishing 75 mobile clinics in several Islamic countries and Muslim communities.

The programme is aimed at offering general medical services to the least developed areas and contributing to medical treatment of the needy. The mobile health clinics will provide primary health care, medical x-rays and tests. The programme is also expected to contribute to promoting the health and medical standards in the countries concerned, training and upgrading of the local medical staff in accordance with global professional standards enabling them to meet the requirements for treatment of eye, ear-nose-throat (ENT) and urinary tract disorders as well as cancer and heart diseases, etc.

The IDB Group Chairman said that in addition to the Kyrgyz Republic, the mobile health clinics programme funded by the Custodian of the Two Holy Mosques will cover Pakistan, Tajikistan, Afghanistan and Yemen as well as a number of other countries in the Asian continent.

*Images from IDB.

Adahi now has a mobile point of sale

The Saudi Project for the Utilization of Hajj Meat (Adahi), managed by Islamic Development Bank (IDB), has introduced the Adahi Mobile Point of Sale to make it convenient for Hajj pilgrims and others to purchase e-coupons for Hady, Fidya, Odhyia, Sadaqa or Aqeqa*.

Source: Adahi website.

"An e-coupon with the project name and logo along with the price will be printed and an SMS sent to the buyer to confirm the transaction,” the Chairman of the Islamic Development Bank (IDB) Group, Dr Ahmad Mohamed Ali, explained.

He further stated that the Project is designed to make it easy for pilgrims to perform the ritual by providing animals that meet all shari'ah and health requirements and by ensuring that the environment around the Holy Sites remains clean and protected. 

“Since its inception in 1403H (1983), the Project has managed to utilise and distribute more than 17 million livestock amongst the poor in Saudi Arabia and 27 other countries,” he said.

The IDB Group Chairman indicated that the Project’s website www.adahi.org is designed to enable individuals intending to buy sheep for Hady, Odhiya, Sadaqa, Fidya, and Aqeqa to do so with a credit card all year round, from any part in the world. The prices vary by the year. This year (1435, or 2014) a coupon will cost SR490 (US$131 or 98 Euros, according to the current exchange rate).

He also indicated that people can purchase the direct sale coupons from Saudi post offices, branches of Al Rajhi Bank, Al Amoudi foreign exchange bureaus, the Association of Charity Gift for Pilgrims, and the Way for Retail Techniques Company.

Dr Ali stressed that according to Royal Decree 131 of 15/6/1419H (5/10/1998), the sole institution authorised to sell Adahi coupons is confined to the Saudi Arabia Project for the Utilization of Hajj Meat. The IDB Group Chairman also emphasised that all the animals are inspected by veterinary doctors and shari'ah scholars to ensure that the animals meet all shari'ah and health requirements.He further shared that the Project has so far made provisions for 750,000 sheep and 10,000 cows and camels.

The Chairman commended the Project for enabling pilgrims to perform this rite with great ease and thus focus on other Hajj rites. He added that the Project helps to make the meat available to the relevant beneficiaries among the poor in Makkah, after which the surplus is distributed to the poor in 27 other countries.

According to the Adahi website, hady meat from last year's Hajj was sent to various countries in Africa, but also to Bangladesh and Yemen.

*Definitions

• Aqeqa or aqiqah is about a sacrifice made on the occasion of a birth.
• Fidya or fidyah refers to payments made if fasting is not done during Ramadhan.
• Hady or hadi is the sacrifice of a suitable animal in Makkah during the Hajj by pilgrims. It is carried out between 10 and 13 Dhul-Hijjah. 
• Odhiya or udhiyah, also called qurbani or korban, is the sacrifice of a suitable animal for Eid Al Adha by people who are not on Hajj. Some scholars say it is obligatory whereas others believe it is part of tradition.
• Sadaqa, or sadaqah, refers to charity. 

Islamic Development Bank prices US$1.5 billion sukuk issuance

The Islamic Development Bank (IDB) has successfully priced a set of US$1.5 billion, five-year fixed-rate trust certificates (sukuk) issued at par with a 2.111% semi-annual profit rate under its US$10 billion Trust Certificate Issuance Programme. 

Despite an uncertain market environment, IDB's AAA ratings, strong financial position and commitment to support the liquidity of its sukuk made a compelling story for investors. The success of IDB's transaction was underpinned by investor meetings across key hubs of Asia, Middle-East and Europe. 

The issue saw strong participation from investors across the Middle East, Asia and Europe. The distribution saw dominated by MENA (59%), 27% to Asia, and 14% to Europe. Forty-three percent was allocated to central banks, followed by 34% to banks, 12% to fund managers and 11% to other investor types. 

The Trust Certificates will be listed on the London Stock Exchange, Nasdaq Dubai and Bursa Malaysia under an Exempt Regime. CIMB, First Gulf Bank, GIB Capital, HSBC, Maybank, National Bank of Abu Dhabi, Natixis and Standard Chartered Bank acted as joint lead managers and joint bookrunners, with Bank of London and Middle East and NCB Capital as co-managers.

Dr Abdul Aziz Hinai, Vice President, Finance, IDB, who led the delegation for the roadshow commented: "We are very delighted with the outcome of the deal, which achieved our main objectives for the transaction to build on the success of the deal in February 2014 in order to establish another liquid benchmark and further position IDB in line with its supranational peer group. I am particularly happy to see that the deal was placed into a high-quality and diversified order book, including a number of first-time investors to the IDB credit."

Islamic finance industry needs to move from awareness to action

For the second consecutive year, the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the Islamic Development Bank (IDB), in collaboration with Thomson Reuters, has released findings from the Islamic Finance Development Indicator* (IFDI 2014) at the Global Islamic Finance Forum in Kuala Lumpur, Malaysia.

Khaled Al Aboodi, CEO of ICD said: “The ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI) is the only numerical measure representing the overall health and development of the Islamic finance industry worldwide. It is an unbiased, multi-dimensional barometer that considers the progress of the Islamic finance industry beyond measurement of profits and assets growth. 

"In 2013 we saw awareness of Islamic finance spread worldwide. The next step is to translate that awareness into action. The ICD will continue to facilitate the use of Islamic financial products and services in order to empower the private sectors in Organisation of Islamic Cooperation (OIC) countries.”

Key findings from the ICD Thomson Reuters Islamic Finance Development Indicator 2014 report are:

• 2013 global Islamic finance assets = US$1.658 trillion; Malaysia overall leader 
• 2013 global Islamic banking assets = US$1.214 trillion; Sudan best performing
• 2013 global takaful assets = US$27.8 billion; Qatar best performing 
• Gap between the awareness indicator (most developed) and quantitative development (weakest) 
• Twenty-eight countries have Islamic finance regulations. Only Bahrain, Malaysia, Nigeria and Pakistan have regulations covering all sectors.
• For global financial centres, Singapore is the most developed. 

• Singapore is in the sukuk top 10
• Singapore and the UK are in the corporate governance top 10
• Singapore is in the conferences top 10
• UK is in the knowledge and seminars top 10

The IFDI measures five key components that combine to depict the bigger picture of the state of Islamic finance: quantitative development, governance, corporate social responsibility (CSR), knowledge and awareness. 

The IFDI global average development value is 10. Malaysia is the most developed Islamic finance nation out of 92 countries, scoring 93. Bahrain (76) and Oman (64) are second and third, respectively. The other four GCC countries are also ranked in the top 10, along with Jordan, Pakistan and Brunei.

The awareness indicator has a high global average value of 29 development points for the news sub-indicator, which assessed 92 countries. The other two sub-indicators for awareness are: seminars (global average value seven) and conferences (global average value nine). There were 231 Islamic finance seminars and conferences and 14,490 exclusive news announcements in 2013. 

There is a gap between awareness development and quantitative development, which scored the lowest global average of six. Significantly, the awareness indicator saw the lowest percentage of countries – 21% – scoring higher than the global average. This indicates that while awareness about Islamic finance is widespread, it is not deeply-rooted enough to be translated into action. 

Islamic finance activities are still largely concentrated in the GCC and Malaysia, with Jordan, Pakistan and Brunei also in the top 10. Action is needed to move all other countries from awareness to quantitative development.

Moving from awareness to knowledge is one challenge for the Islamic finance industry worldwide. Globally, 66 countries contributed to this indicator. There were 477 institutions providing Islamic finance courses and degrees and1,363 research papers were published between 2011 and 2013. 

There is greater interest on Islamic finance in Sub-Saharan Africa, which closely trails leaders Europe and other MENA in the courses category and is home to more institutions offering degrees than Southeast Asia. In Southeast Asia and the GCC, more institutions offer degree programmes than courses, which reflects a focus on longer-term human capital development.

The global average score for the quantitative development stands at a very low six development points. There is a highly uneven development of Islamic finance worldwide, even among the top 10 most developed nations. Fifty-three points separate Malaysia in first place and fifth-placed Qatar, and there are 64 points between Malaysia and tenth-placed Brunei. 

The global aggregate value of Islamic finance assets reached US$1.658 trillion at the end of 2013 mainly from Islamic banking assets which accounted

for 73% of the total, followed by sukuk that contributed US$279.8 billion. Other Islamic finance institutions (OIFIs) contributed US$85.5 billion while Islamic funds and takaful assets stood at US$50.7 billion and US$27.8 billion, respectively. Islamic finance assets are expected to reach up USto $2 trillion within a couple of years.

Governance considers regulations, shari'ah governance and corporate governance. The global average value for governance is 12 development points. Only 28 out of 92 countries have Islamic finance regulations. Unsurprisingly, the overwhelming majority of jurisdictions (86%, 24 countries) with regulations are Muslim-majority countries. Of the remaining four, Nigeria has a significant Muslim population and three Muslim-minority countries round off the top 10: Mauritius, Singapore and the Philippines.

Only four countries have full coverage of regulations: Bahrain, Malaysia, Nigeria and Pakistan. Bahrain pips Malaysia to the top spot with its superior shari'ah governance score.

The CSR Indicator considers CSR Funds Disbursed and CSR Disclosure. Overall, average disclosure for financial reporting is high but there is a low level of CSR disclosure; on average only 30% of items are disclosed. There is particularly a lack of disclosure of training and employee welfare activities. Oman was the best performer for CSR disclosure but distributed a far lower amount of CSR funds than Jordan and Bahrain.To download the report, click here.

*The ICD Thomson Reuters Islamic Finance Development Indicator is a composite weighted index that measures the overall development of the Islamic Finance industry by providing an aggregate assessment of the performance of all its parts, in line with the objectives of Islamic principles. 

It is a global level composite indicator with country and unit specific level indicators. The composite indicator is released annually, featuring a full report detailing each country and unit specific level indicator and their raw numbers.
Each indicator within the composite indicator's constituents will be equally weighted and aggregated, i.e. all variables are given the same weight. In addition, normalisation is required prior to any data aggregation as the variable indicators in a data set have different measurement units. 

For the country composite indicator level, country indicators are normalised to allow for meaningful comparisons over time for a given country and between countries. Various economic indicators (e.g. population size) will be considered while measuring the health of the Islamic finance industry in each country.

Islamic Development Bank approves grants for projects in Bangladesh, Jordan, Lebanon, UAE

The Board of Executive Directors of the Islamic Development Bank (IDB), which met at in conjunction with the 39th Annual Meeting of the Board of Governors of the IDB, have approved US$447.6 million towards financing new development projects in a number of their 57 member countries.

Source: IDB.

The major part of the financing, US$304 million, went to the energy sector, including US$220 million for a power grid extension project in Bangladesh. Other approved financing includes US$87.5 million for the improvement of wastewater management and sanitary services in Al Ghadir Drainage Basin, Lebanon; as well as an additional US$25 million for the second phase of Queen Alia Airport Expansion Project, Jordan, raising the IDB financing for the Queen Alia airport expansion to US$125 million.

The members of the board further approved of IDB's continued contribution to the International Center for Biosaline Agriculture (ICBA), Dubai, UAE, as the centre represents a successful example of mutual cooperation between the Bank and the UAE. ICBA has developed into a research centre with an international team of scientists and researchers working on innovative solutions to improve the status of poor farmers and to implement development programmes aimed at upgrading productivity in agricultural regions. 

ICBA was launched at the initiative of the IDB, in recognition of the important role by the Gulf states in line with supporting the Bank. The Bank cooperated with the UAE in management and operating of ICBA until April 2010, when the responsibility was transferred to UAE's Ministry of Environment and Water.

Islamic Development Bank launches private equity infrastructure fund

The Islamic Development Bank's Board of Directors led by His Excellency Dr Ahmad Mohamed Ali, President of the Islamic Development Bank (IDB) Group, announcing the launch of the US$2 billion Islamic Development Bank Infrastructure Fund II (the IDB Fund II), on the occasion of the 40th anniversary of the IDB on 26 June.

The US$2 billion Islamic Development Bank Infrastructure Fund II (the IDB Fund II), the largest private equity infrastructure fund dedicated to the 57 member countries of the IDB, has been launched in conjunction with the 40th anniversary of the IDB.

The IDB Fund II is the successor to the US$730 million IDB Infrastructure Fund I (the IDB Fund I), also supported by the founding investors, which achieved an IRR of 18% and an investment multiple of 1.7 times across signature projects such as AirAsia in Malaysia, Saudi International Petrochemical Company (SIPCHEM) in Saudi Arabia and AES Oasis with power assets in Pakistan, Oman and Jordan.

The new fund is supported by the Public Pension Agency of the Kingdom of Saudi Arabia, the Public Investment Fund of the Kingdom of Saudi Arabia, the Ministry of Finance of the Kingdom of Bahrain and the Ministry of Finance of the Sultanate of Brunei Darussalam as founding investors, with aggregate commitments totalling US$750 million for the first closing.

His Excellency Dr Ahmad Mohamed Ali, President of the Islamic Development Bank (IDB) Group, said: "Building on the successful track record of IDB Fund I, the IDB and founding investors are nearly tripling the size of the IDB Fund II to US$2 billion. The fund will mobilise up to US$24 billion of aggregate financing to support the development of key infrastructure projects in IDB member countries."

IDB and the founding investors have established ASMA Capital Partners, based in the Kingdom of Bahrain, as a multi-fund asset management platform to manage the IDB Fund II. The Chairman of ASMA Capital is the President of the IDB Group, and the Vice Chairman is H.E. Mohammed Al-Kharashi, the Governor of the Public Pension Agency of the Kingdom of Saudi Arabia, H.E. Dato Paduka Haji Bahrin bin Abdullah, Deputy Minister of Finance of the Sultanate of Brunei Darussalam.

The other Board Members are Abdulla Ebrahim Al Ayadhi, Assistant Secretary General of the Public Investment Fund of the Kingdom of Saudi Arabia and Sami Mohammed Humaid, Director of Foreign Economic Relations of the Ministry of Finance of the Kingdom of Bahrain. The management team is led by the CEO of ASMA Capital, Mumtaz Khan, who previously managed the IDB Fund I.

H.E. Mohammed Al-Kharashi said, "ASMA Capital is expected to play a significant role in assisting pension funds and other global investors seeking to deploy capital into infrastructure projects in select emerging markets for portfolio diversification and stable return."

The IDB Fund II will have a broad sectorial focus beyond the core infrastructure sectors of power, telecommunications, and transportation. It will include investments in oil and gas, refinery and petrochemicals, steel and aluminum, mining, logistics and an allocation for healthcare, education, and financial services.

Mumtaz Khan said, "The IDB Fund II is a unique platform combining the strength of IDB and other founding investors with an experienced management team to identify and develop investment opportunities across multiple regions."

A final closing with additional investors is targeted for early 2015.