ICD invests in AIB, Bangladesh

Source: ICD. Stakeholders pose at the strategic investment signing ceremony between Al-Aradah Islami Bank Limited and the Islamic Corporation for the Development of the Private Sector.

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, has announced its strategic investment partnership with Al-Arafah Islami Bank (AIB), an Islamic bank in Bangladesh. ICD is expected to infuse growth capital of around US$20 million through a 10% equity subscription in the capital of AIB.

The collaboration with AIB exhibits ICD’s long-term vision to bring not only good corporate governance, international best management practice, innovative Islamic products but also to reap stability and confidence in the financial sector in Bangladesh. Khaled Al Aboodi, the CEO of ICD stated that this strategic initiative reflects ICD’s continuous effort to play a catalyst role in the promotion of Islamic finance and private sector development in Bangladesh.

Badiur Rahman, the Chairman of the bank highlighted that with ICD as Islamic multilateral institution, AIB would materialise its vision having the finest Islamic infrastructure by bringing financial solutions in the liquidity management, capital market products (sukuk), infrastructure, real estate, retail and SME sectors with best risk management framework. He further stressed that having ICD as strategic shareholder is the result of the confidence and trust kept on the board and management by all the stakeholders over the last 20 years. This new avenue would strengthen rating of the bank and pave the way for extending network with other international Islamic players in the world.

ICD has already committed US$110 million for the manufacturing, textiles and apparels, construction, and power sector along with US$70 million in lines of financing for the SME sector in Bangladesh.