Nairobi/Jeddah, October 26th 2021 – The Eastern and Southern African Trade and Development Bank (TDB) and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a Memorandum of Understanding (MoU) with the purpose of advancing cooperation in the provision of finance and investment to private sector in their common Member States in Eastern and Southern Africa.
The agreement establishes a framework for both institutions to collaborate with the aim of financing eligible transactions in targeted countries sponsored by the private sector or non-sovereign backed projects. Possible financing solutions to be considered include syndication and co-financing opportunities, risk sharing, bilateral financing and/or medium term liquidity lines of credit, corporate and project finance, and public-private partnerships.
Furthermore, the MoU provides for collaboration in developing capital markets through sukuk (trust certificates) structuring and advisory services, as well as for further exploration of possible equity investment opportunities in the capital stock of TDB.
TDB and ICD are fellow members of the International Development Finance Club (IDFC), and as such, are aligned in their commitment to provide innovative financial solutions to promote sustainable development investments in Africa – in accordance to the SDG Agenda and Paris Agreement.
Admassu Tadesse, TDB President Emeritus and Group MD said, “Private sector financing is crucial in the achievement of long-term development goals. The partnership with ICD has the potential to boost resilience and bring about triple bottom-line impacts, and comes at a critical time as Africa rebuilds its economies, which have been severely impacted by the COVID-19 pandemic.”
Mary Kamari, TDB Corporate Affairs and Investor Relations Executive added: “TDB forges partnerships with institutions which have the potential to help us advance sustainable development in our region, whether via debt or equity capital, or other solutions such as technical assistance. This MoU with ICD promises to drive change in the region we serve, in this case, particularly with the use of Islamic finance products.”
Ayman Sejiny, the CEO of ICD, commented:” Signing this MoU with TDB is a confirmation of ICD’s commitment to support the private sector development of its member countries across Eastern and Southern Africa by exploring co-financing opportunities, as well as collaborating to develop capital markets as a vital resource mobilization medium. We reaffirm our strong interest in developing a long-term relationship and widening our partnership to support the development of the private sector in our common members countries.”
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based, investment-grade development finance institution, with 41 sovereign and institutional shareholders and assets of USD 7.2 bn. TDB serves 22 economies in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development.
TDB is part of the TDB Group, which also comprises TDF (the Trade and Development Fund), ESATF (the Eastern and Southern African Trade Fund), TCI (TDB Captive Insurance), and the TDB Academy.
About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is member of the Islamic Development Bank (IsDB) 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 is Rated A2’ by Moody’s, ‘A-’ by S&P and, A+ by Fitch. ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive.
Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Nabil El Alami
Division Head, PR & Communication
Islamic Corporation for the Development of the Private Sector (ICD)