Saudi-based Islamic Corporation for the Development of the Private Sector (ICD) has signed an agreement to establish a $1 bilion infrastructure fund focused on Africa.
The private sector arm of the Islamic Development Bank Group has inked the deal with the IL&FS Investment Managers Limited (IIML), the private equity arm of IL&FS Group.
ICD and IIML said in a statement that they will collaborate to establish the fund to finance small to mid-sized infrastructure projects in Africa.
It will target mainly the power and transportation sectors and will promote integrated projects within Africa, the statement said.
The fund will follow Sharia’h principles and will target healthcare, transportation, utilities, power and telecom industries.
The aim of the fund is to finance commercially viable projects and deliver more sustainable and thus catalyzing infrastructure for private sector development mainly on the continent of Africa.
Khaled Al Aboodi, CEO of ICD, said: “This strategic cooperation brings complementarity between our institutions to realize a common vision. A vision of providing demonstrable development impact through private sector intervention in, the much needed, infrastructure sector in Africa, which is in line with ICD and IsDB Group strategy."
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