ISLAMIC Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, announced on March 30 its strategic investment partnership with Al-Arafah Islami Bank Limited (AIBL), the leading Islamic bank in Bangladesh. With this landmark transaction, ICD is expected to infuse growth capital of around $20 million through 10% equity subscription in the capital of AIBL. On the eve of signing ceremony in Dhaka, 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. Earlier, ICD committed $110 million for the manufacturing, textiles & apparels, construction, power sector along with $70 million lines of financing for the SME sector in Bangladesh. Proposed collaboration with AIBL 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. Badiur Rahman, chairman of the bank, highlighted that with ICD as Islamic multilateral institution, AIBL would materialize 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. Rahman 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.
