Halal Economy

The global perspective

Friday, August 23, 2019

Afreximbank, ICD seal financing agreement on $100m facility

ABUJA: The African Export-Import Bank (Afreximbank) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a Line of financing agreement for a $100-million facility. According to the agreement, Afreximbank will use the facility to provide Shari’ah-compliant financing to Small and Mediumsized enterprises (SMEs) in its member countries in Africa. The Bank has a solid pipeline of projects in the industrial, communication, technology, healthcare, construction and agricultural sectors that would be financed by the ICD Line of financing.

Commenting on the transaction, CEO of ICD, Khaled Al Aboodi, said: “The proposed financing facility is a token of a good partnership between ICD and Afreximbank, with the purpose of supporting private sector businesses with a Shari’ah compliant facility structure in our common African member countries.”

He explained that the transaction’s key economic and financial developmental impact will be, but not limited to; developing private sector, especially SMEs, to help expand the real economic growth based on value creation, and promoting Islamic Finance based on the pipeline of Afreximbank projects.

The ICD Chief also stated that the line of Finance facility is also expected to have an impact on Sustainable Development Goals (SDGs) in line with ICD’s strategic objectives. “This facility will give a boost to our effort to implement our current strategy which prioritises intra-African trade, intra- African investments, and export manufacturing of the labour intensive type. It will also promote our knowledge in Islamic finance and provide us with additional maneuvering capacity in terms of product offerings to our clients.” (New Telegraph)