Mocambique: Documentos para o acesso de financiamento do Banco Islâmico de Desenvolvimento (BID)

1. THE PRIVATE SECTOR ARM OF
THE ISLAMIC DEVELOPMENT BANK GROUP
Islamic Corporation for the Development of the Private Sector
Member of Islamic Development Bank (IDB) Group
February 2012

2. Table of Contents
Section 1: Overview
Section 2: ICD Business Lines
Section 3: Case Studies
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3. 1. Overview

4. Overview: Mission and Vision
 The Islamic Corporation for the  The Vision of ICDis to be a major player in the development of promotion of
Development of the Private the private as a vehicle for economic and social growth and prosperity in
Sector (ICD), is the private sector Islamic countries
arm of the Islamic Development  The Mission of ICD is to complement the role played by IDB through
Bank (IDB), a multilateral  Providing Islamic financial services and products
development finance institution
 Promoting competition and entrepreneurship in member countries
 Advising governments and businesses
 IDB, headquartered in Jeddah,
Saudi Arabia, is a USD 50bn+  Encouraging cross border investments
bank with 56 member countries
mainly located in Asia, Middle
East and Africa
 ICD was established in 1999
with an authorized capital of
USD 2bn and a membership of
52 countries. It is 50% owned by
IDB, 20% by public financial
institutions and 30% by the
member countries
3

5. Overview: ICD Member Countries
Central & East & South South
MENA West Africa CIS & Europe
East Africa Asia America
1. Algeria 1. Benin 1. Albania 1. Cameroon 1. Bangladesh 1. Suriname
2. Bahrain 2. Burkina Faso 2. Azerbaijan 2. Chad 2. Brunei
3. Egypt 3. Gambia 3. Kazakhstan 3. Djibouti 3. Indonesia
4. Iran 4. Guinea 4. Kyrgyzstan 4. Gabon 4. Malaysia
5. Iraq 5. Guinea 5. Tajikistan 5. Sudan 5. Maldives
6. Jordan Bissau 6. Turkmenistan 6. Mozambique 6. Pakistan
7. Kuwait 6. Ivory Coast 7. Uzbekistan 7. Uganda
8. Lebanon 7. Mali 8. Turkey 8. The Comoros
9. Libya 8. Niger
10.Mauritania 9. Nigeria
11.Morocco 10.Senegal
12.Palestine 11.Sierra Leone
13.Qatar
14.Saudi Arabia
15.Syria
16.Tunisia
17.U.A.E
18.Yemen
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6. Overview: ICD Goals & Strategic Objectives
ICD strategic objective is to promote private sector by: helping create jobs; providing Islamic
financing capabilities in all member countries; and providing access to financing.
1440 Vision ICD Goals
 1 million jobs created  1 – 2 channels (financial institution
investments) per country by 1440
 1 million low income families with access to
finance  3,000 enterprises per channels
(SME through to corporations in key sector)
 50 Islamic finance channels created / developed
 10,000 retail users per channel
 Enabling environment in 10 member countries (micro enterprises and lower income families)
 70% of resources from the market  1 direct investment per country by 1440
(in sectors outside financial services)
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7. 2. ICD Business Lines

8. ICD: Developing Islamic Banks
ICD extends its own reach by setting up, investing, financing and providing expert advice to other
Islamic Banks in its Member Countries.
Focus of Islamic Banks Tamweel Africa
Formerly Dawood Islamic Bank Holding
 The objective is to develop Islamic Financing Channels by
USD 28.21 M USD 35.3 M USD 13.1 M
promoting and developing financial institutions. These Equity Equity Equity
institutions acts as financial channels for ICD and provide a Financial Sector Financial Sector Financial Sector
Pakistan Senegal Yemen
multiplier effect on the investment dollars 2006, 2008, 2010
2005, 2006, 2007, 2011 2010
 The focus is to develop the market by establishing and investing Islamic Bank Islamic Bank Islamic Bank
in the following type of institutions through control and non- of of of
Niger Mauritania Guinea
control positions: USD 2.2 M USD 26.3 M USD 2.6 M
Equity Equity Equity
• Islamic Banks Financial Sector Financial Sector
Mauritania
Financial Sector
Niger Guinea
• Ijara Companies 2008, 09 2008, 09 2008, 2009
• Takaful Companies
• Mortgage Companies Islamic Bank
of
Senegal
USD 3.0 M
USD 3.4 M
Equity Equity
Financial Sector Financial Sector
Senegal Sudan
2008 2003, 2005, 2008
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9. ICD: Developing Islamic Financial Institutions
ICD extends its own reach by setting up, investing, financing and providing expert advice to other
Islamic Financial Institutions in its Member Countries.
Focus on Islamic Financial Institutions Taiba Leasing
Azerbaijan
Leasing Co.
 ICD also invests in other Islamic Financial Institutions in order to USD 4.9 M USD 5.0 M USD 6.2 M
promote the development of Islamic Finance as a viable Equity Raising Equity
Equity
Financial Sector
alternative to conventional finance Sole Placement Agent
Financial Sector
Azerbaijan
in KSA Uzbekistan
2010 2009 2009
 As with banks, investing in these financial institutions will have a
multiplier effect and increase the total assets in Islamic products Sukuk
Arab Leasing & Exchange
in member countries Investment Company Center
USD 6.0 M USD 10.0 M
USD 0.75 M
 Currently, there is a lack of such Institutions in the Islamic Equity Equity Equity
countries and Sharia compliant FIs are needed to finance private Financial Sector Financial Sector Financial Sector
Bahrain
Saudi Arabia Sudan
sector 2006
2008 2008
 The objective is to go beyond basic banking and develop non-
banking FIs (e.g. Ijara, takaful) and continue to provide the market Asean Retakaful
with access to innovative Islamic products
USD 1.1 M USD 3.0 M
Equity Equity
Financial Sector Financial Sector
UAE Malaysia
2005 2005
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10. ICD: Provision of Lines of Finance
Lines of Finance
 ICD also provide Lines of Global Line of Financing Global Line of Financing Global Line of Financing Global Line of Financing Global Line of Financing
Bangladesh Azerbaijan Tajikistan Uzbekistan East-Asia
Financing to institutions in
order to meet common USD 50.0 M USD 40.0 M USD 10.0 M USD 50.0 M USD 42.0 M
business and social objectives Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector
especially the small and Bangladesh Azerbaijan Tajikistan Uzbekistan East Asia
medium enterprise (SME) 2011 2010 2010 2009 2008
sector
PT Mandala Multi Global Line of Financing
Finance Kyrgyz
USD 8.0 M USD 3.5 M USD 2.0 M USD 1.0 M USD 4.0 M
Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector
Indonesia Yemen Uzbekistan Uzbekistan Kyrgyz
2008 2007 2006 2006 2006
USD 2.0 M USD 3.0 M USD 4.5 M USD 800,000 USD 1.7 M
Financial Sector Financial Sector Financial Sector Financial Sector Financial Sector
Mauritania Mauritania Azerbaijan Azerbaijan Azerbaijan
2005 2003 2003 2003 2003
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11. ICD: Direct Equity Investment
Apart from investments in financial institutions, ICD supports the development of member countries
by investing in companies seeking capital expansion.
Scope of Services Sectors
Healthcare & Industrial & Telecom &
 Selective Greenfield and Operating Companies Other Sectors
Pharmaceutical Manufacturing Technology
investments that have a strong equity story
with a potential of major development benefits USD 69.0 M USD 10.0 M USD 10.0 M
USD 25.5 M
Equity Raising & Equity Equity
Underwriting Healthcare Cement Telecommunication
Real Estate
 Equity investment can be through capital Saudi Arabia
2008
Saudi Arabia
2010
Sudan
2005, 2010
Indonesia
2008
increases or buyouts
Al-Laali Real Estate AGCM
Development Industries
 Types of equity investments: USD 25.0 M
Equity
USD 5.3 M
Equity
USD 6.0 M
Equity
USD 4.8 M
Equity
• Plain Equity Real Estate
Mauritania
Healthcare
Saudi Arabia
Industrial
Algeria
Technology
Egypt
• Quasi-equity 2008 2005, 2008 2007 2004, 2005
• Hybrids (convertible) Gabas Global Glass Containers
Biotechnology Company (GCC)
Company
USD 60 M USD 10.0 M USD 4.8 M USD 2.5 M
 ICD added value through active participation in Equity Raising &
Underwriting
Equity
Equity Equity
Pharmaceutical Industrial Sector Telecommunication Sector
the companies’ boards to support business Yemen Saudi Arabia Egypt Yemen
2005 2007 2002 2002
effectiveness and corporate governance
USD 10.7 M USD 4.02 M USD 12.5 M
Equity Equity Equity
Pharmaceutical Industrial Manufacturing Technology
Jordan Regional (Jordan) Regional (UAE)
2005 2001 2000
10

12. ICD: Provision of Term Financing
ICD extends Term Finance to clients for capital investments aiming at expansion of existing
enterprise, establishment of a new enterprise and project implementation.
Scope of Services Sectors
 ICD provides term financing for Greenfield and Other Sectors Healthcare &
Pharmaceutical
Industrial &
Manufacturing Telecom
Brownfield projects in healthcare, Yemeni Saudi
infrastructure, ICT and industrial sectors Horizon Fisheries Project
Cement Company
(Batais)
USD 20.0 M USD 6.0 M USD 27.5 M USD 10.0 M
Healthcare Industrial & Manufacturing Telecommunication
 ICD can act as an underwriter, lead arranger or Food & Fisheries
Maldives Kuwait Yemen Syria
participant in such term financing projects 2009 2007 2008 2002
TAB Rig
 The average size of such financing is between Company
US$ 10 -20 million with a tenure of 4-7 years USD 43.0 M USD 13.0 M USD 25.0 M USD 10.0 M
Oil & Gas Healthcare Industrial & Manufacturing Telecommunication
Libya Saudi Arabia Pakistan Yemen
 Minimum size of US$ 5m 2008 2006 2005 2002
Middle East Queenex Paper
 Term finance can be provided through: Royal Atlantic
Residence
Healthcare
Company
Products Company
• Non-recourse borrowing (project USD 13.0 M
USD 10.0 M
USD 26.9 M
USD 12.0 M
Real Estate Industrial & Manufacturing
Healthcare Telecommunication
finance) Gambia Saudi Arabia UAE Sudan
• With-recourse borrowing 2007 2000 2004 2001, 2004

13. ICD: Provision of Short-Term Financing
ICD provides short-term financing for companies where cash flow from operations is not sufficient to
keep up with their growth-related financing needs.
Scope of Services Sectors
 Providing liquidity to corporations with Healthcare Real Estate Oil & Gas
Industrial &
Manufacturing
development benefit to its country
USD 5.0 M USD 5.0 M USD 5.0 M USD 14.0 M
 The tenure for short-term loan can be up to 2 Healthcare Real Estate Oil & Gas Industrial & Manufacturing
years Saudi Arabia Saudi Arabia Bangladesh Syria
2007 2009 2009 2004, 2007, 2008, 2009
Yemen Steel
 This facility can be provided through: Al-Shiddi Real Estate
Company
PT Dimas Utama
(Geothermal Project)
Manufacturing
Company Ltd.
• Trade finance USD 5.0 M USD 5.8 M USD 6.0 M
• Working capital
Real Estate Oil & Gas Industrial & Manufacturing
Saudi Arabia Indonesia Yemen
• Bridge finance 2009 2008, 2009 2007, 2009
Canadian
Engineering Western
Co.
USD 5.0 M USD 5.0 M
Oil & Gas Industrial & Manufacturing
UAE Jordan
2004 2005, 2007
USD 5.0 M
Industrial & Manufacturing
Jordan
2005

14. ICD: Advisory Services
ICD has put together a team of highly experienced investment bankers to support Advisory
transactions. Making available of its full resources to ensure a successful outcome of any transaction
it undertakes.
Scope of Services
 ICD provides a wide variety of advisory services to governments, USD 100 M
Murabaha Financing Facility
public entities and private entities of member countries in order Restructuring & Capital
Raising Joint Lead Arranger
to help create the right environment to facilitate private sector Financial Advisor Financial Advisor
investment and also to assist companies in achieving their 2011 2011
potential
 Range of Services for Government
Government of Senegal
• Privatization USD 590 M USD 200 M
• Public Private Partnership (PPP) Project Finance Advisory Structuring & Placement
Sukuk Issuance
Agent
• Government Sukuk Capital Raising Financial Advisor Financial Advisor
• Development of Islamic Capital Markets 2011 2010
• Development of Business Environment for SME
 Range of Services for Private Sector
• Strategic Advisory / Restructuring Advisory USD 11.7 M USD 460 M
• Access to Growth Capital Setting Up The Bank,
Equity Raising Equity Raising
• Project Finance Advisory &
Underwriting
Financial Advisor Financial Advisor
• Development of Islamic Financial Institutions
2010 2010
13

15. ICD: Asset Management
ICD establishes and develops specific Financial Instruments to support the growth of targeted sectors
in its member countries.
Scope of Services Renewable Energy SME
Fund Fund
 ICD supplements its own balance sheet by sponsoring / creating private (to be launched) (to be launched)
equity funds as well as other special purpose vehicles in order to provide the USD 250 M USD 250 M
IDB Group and other investors with access to projects that provide Energy Sector All Sector
commercial returns as well as meet the developmental needs of member Renewable Energy Investments SME Investments
In Member Countries In Member Countries
countries 2012 2012
 ICD acts as a fund manager and/or general partner with other fund managers
to sponsor and create special purpose vehicles along with third party ICD Housing UIF
investors including but not limited to IDB and ICD; other Multilateral Development Fund (Unit Investment Fund)
(to be launched)
Agencies; Sovereign Wealth Funds; Government Funding Vehicles and High USD 500 M USD 250 M
Net Worth Individuals Investments in Member
Real Estate Sector
Countries
Affordable Housing Investments
Regional
 Types of Funds In Member Countries
 Medium and Short Term Working Capital Funds 2012 1995
 Energy Funds
 Infrastructure Funds (Project Finance and Equity)
 Food and Agriculture Funds
 Real Estate Funds (Middle Income and Affordable Housing)
 SME Funds
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16. 3. Case Studies

17. Case Studies
Case Study 1: Mukalla Steel Mill in Yemen
Case Study 2: Djibouti Bulk Terminal Port
Case Study 3: Tamweel Africa / Government of Senegal Sukuk
Case Study 4: SME Funding through Lines of Finance
Case Study 5: Middle Income Housing
16

18. Case Study: Enhancing Development via Arranging / Financing
 ICD acted as a lead arranger and
financier for the construction of a
steel mill plant in Mukalla, Yemen
Project
Sponsors
 The total project cost was a US$ US$ 48mn of
172mn out of which the ICD led term financing
consortium contributed US$ 48mn in with equal
term financing contribution
from the
US$ 124mn of three
equity syndicate
financing members
 ICD was able to bring in two
development funds to participate in
the syndication, with all three parties
contributing US$ 16mn each:
 OPEC Fund for International
Development
 Arab Fund for Economic and
Social Development
The result of construction of the steel mill in Mukalla, Yemen
resulted in much needed capacity for steel to be used in Yemen
and the creation of 700 new jobs
17

19. Case Study: Promoting Infrastructure Development via Financing
 ICD partnered with African
Development Bank to fund the
construction of a US$ 30mn bulk
terminal port in Djibouti with ICD and
ADB providing the necessary term Project
financing for the project Sponsors
US$ 10mn of
term financing
 The terminal was built to handle with US$ 6mn
contribution
approximately 1.0 million tons of from African
fertilizer and grain a year and covers a Development
42,000 square meter in Port US$ 20mn of Bank and the
Autonome International, and is equity remaining
financing from ICD
managed by SDTV out of Djibouti
 The facility is designed store and
process (unloading / bagging /
loading) of cereals and fertilizers for
export to Ethiopia and sub-regional
markets The result of the project was to lower the landed cost of food and
agriculture input products In Djibouti and Ethiopia by reducing
turn-around time and expediting delivery of goods
18

20. Case Study: Developing Islamic Finance via Investing / Arranging
 In order to develop the Islamic
Financing market in Western Africa,
ICD embarked on investing in and/ or
60% 40%
establishing Islamic banks in the
region
 ICD partnered with Bank Asya in
Turkey to create a holding company, Tamweel
Tamweel Africa that would not only Africa
invest and manage stakes in Islamic 50.5% 68.8% 50.0% 100.0%
Banks but also provide the necessary
synergies and scale to grow an Islamic
Banking platform Islamic Bank of Islamic Bank of Islamic Bank of Islamic Bank of
Niger Senegal Guinea Mauritania
 ICD invested US$ 33mn for a 60%
stake in Tamweel Africa, which
further invested in three banks in
Niger, Senegal, Mauritania and US$ 200mn Sukuk for the Government of Senegal to provide
Guinea
liquid Islamic Products for the banks to invest
 ICD is also advising the Government
of Senegal on a US$ 200mn Sukuk
issue, thus providing the banks with Joint Advisors and Arrangers of the Sukuk
liquid Islamic products for investing
19

21. Case Study: Promoting SME Development via Line of Finance
1 ICD’s disburses line of financing against guarantees from
the financial institutions
INVESTORS 2 Financial institutions disburse medium term financing to
SMEs for expansion, working capital, etc.
4
3 SMEs pays their medium term financing and the financial
institutions will repay ICD for the line of financing
4 Other investors may participate in the line of financing by
appointing ICD as the Investment Agent.
1
As a result of this ICD helped to:
 Expand SME lending in the CIS and South East
Asia regions
3 2 3 2 3 2  Provide financing to 54 SMEs in five member
countries (Azerbaijan, Kyrgyz Republic, Tajikistan,
Uzbekistan and Mauritania) and over 5,000
SME Clients SME Clients SME Clients
motorcycles were financed by PT Mandala
Multifinance for the use of small family
businesses in Indonesia
20

22. Case Study: Providing Middle Income Housing (Multi-Prong Strategy)
ICD owns a stake in ICD owns a stake in
 ICD has embarked on a mission to
an investment a specialized
facilitate the development of middle banking and asset mortgage finance
income housing in its member management regional advisory
countries through a multi-pronged company in KSA company
strategy that allows it capitalize on its Seed Investor Seed Investor
relationship with investors,
governments and developers Advisor / Fund
Manager
 ICD has played the role of advisor, Advisor / Arranger Advisor / Manager
Advisor / Fund to MFC to MFC
venture investor, real estate investor,
Manager
fund manager and facilitator in order
to achieve the desired objectives of
Al-Fareeda Seed Investor Mortgage
FundMiddle
cou Finance
providing housing to the middle Company
income segment by not only Income
ICD owns stakes in Housing Fund Banks
developing the housing but by Provides
real estate
providing a reliable financing development Mortgages to End
structure for developers and end Provides Funding Users
companies to
to Projects
users promote its
objectives
 In addition, ICD also works with
governments to assist in putting Housing
together the framework necessary to Developer End User
Projects
facilitate the development of the
industry in different countries Develops and Buys House in
Funds Projects Projects
21

23. THANK YOU
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