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ICD Marketing Presentation October 2005 Ramadan 1426

ICD Marketing Presentation October 2005 Ramadan 1426. Presentation Outline. Mission & Proposed Vision. Vision The Islamic Corporation for the Development of the Private Sector (ICD) strives to be a major player in the development and promotion of the private sector in OIC member countries.

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ICD Marketing Presentation October 2005 Ramadan 1426

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  1. ICD Marketing Presentation October 2005 Ramadan 1426

  2. Presentation Outline

  3. Mission & Proposed Vision • Vision The Islamic Corporation for the Development of the Private Sector (ICD) strives to be a major player in the development and promotion of the private sector in OIC member countries. • Mission To complement the role played by the IDB in promoting social and economic growth and prosperity through: • Providing Islamic financial services & products. • Promoting competition and entrepreneurship in member countries. • Encouraging cross border investments. • Advising governments & businesses.

  4. ICD’s Capital Structure • Type: multilateral financial institution. • Authorized capital:US$ 1 billion. • Capital available for subscription:US$ 500 million. • Headquarters:Jeddah, Kingdom of Saudi Arabia. Capital structure Public Financial Institutions 20 % IDB 50% Member Countries 30%

  5. Shareholders of ICD Countries • Algeria • Azerbaijan • Bahrain • Bangladesh • Benin • Brunei Darussalam • Burkina Faso • Cameroon • Djibouti • Egypt • Gambia • Guinea • Guinea Bissau • Indonesia • Iran • Iraq • Jordan • Kazakhstan • Kyrgyzstan • Kuwait • Lebanon • Libya • Malaysia • Maldives • Mali • Mauritania • Mozambique • Niger • Pakistan • Palestine • Qatar • Saudi Arabia • Senegal • Sierra Leone • Sudan • Suriname • Syria • Tajikistan • Tunisia • Turkmenistan • Uganda • UAE • Uzbekistan • Yemen ISLAMIC DEVELOPMENT BANK Public Institutions Iran Foreign Investment Co. Bank Kesharvazi (Iran) Bank Melli (Iran) Saudi Public Investment Fund (Saudi Arabia) Banque Nationale D’Algerie Shareholders as of 06/2005

  6. Objectives • Provide a wide range of financial products and services to Private Sector projects of high potential and contribution to growth in Islamic countries. • Mobilize additional resources for the private sector development. • Encourage the development of Islamic financing and capital markets.

  7. Products & Services • Direct Financing • Structured Finance • Advisory Services • Asset Management

  8. Presentation Outline

  9. Accumulated approvals in USD m

  10. Accumulated number of projects approved since inception

  11. Accumulated disbursement in USD m

  12. ICD operations are diversified Marketing Operations Targets

  13. Portfolio by sector

  14. Portfolio by country

  15. Portfolio by mode of financing

  16. Presentation Outline

  17. Areas of Focus • Modern Manufacturing • ICT and Power • Health & Education • Financial Sector • SME’s Development • Advisory Services

  18. Investment Guidelines (1) • Company Eligibility: • Promising private sector projects introduced by experienced entrepreneurs or promoters. • Public sector enterprises under privatization . • Eligible enterprises should have: • majority voting stock in the hands of private investors, from member countries. • an appreciable contribution to the local economy or intra-regional trade.

  19. Investment Guidelines (2) • Term financing: • For “Greenfield” projects: 40% of project investment cost • For expansion of existing projects: 50% of project investment cost. • Tenure: up to 7-8 years including Grace/Gestation period. • Minimum project size: US$ 5m. (Except for projects financed from lines). • Equity Investments: • Maximum participation: 33% of investee’s capital. • Clear exit strategy within 3-5 Years. • Equity projects should not have more than 30% interest bearing debt.

  20. Investment Guidelines (3) • Security & Guarantees: Various types of security or guarantees are accepted by ICD: • Mortgages/pledges. • Assignment of receivables. • Corporate guarantees from parent companies. • Personal guarantees • Bank guarantees.

  21. Presentation Outline

  22. Working with ICD (1) • Sponsor will have to send a feasibility study emanating from a recognized source of expertise, including: • A short project description (new or expansion, project concept, country, implementation time frame, etc); • Summary of project cost and financing plan (debt/equity); • Amount and purpose of the financing requested from ICD; • The project’s market potential; • Ownership and organizational structure; • Proposed collateral or guarantees. ICD usually conveys an initial reaction after about 2 weeks.

  23. Working with ICD (2) • Once all necessary information is received, the due diligence exercise would start and would typically entail site visits, involvement of consultants and desk work. • Once finalized, the project appraisal is submitted to the Board of Directors of ICD. • Time needed for due diligence depends on several factors. A period of between 4 – 6 months is standard. • Normally, one-third of projects approved for due diligence would reach ICD Board of Directors.

  24. Contacts Islamic Corporation for the Development of the Private Sector (ICD) P.O. Box : 54069, Jeddah 215514, Saudi Arabia Telephone : (966-2) 644 1644 Fax : (966-2) 644 4427 E-mail : icd@isdb.org Website : http//www.icd-idb.org

  25. Presentation Outline

  26. ICD 1425H Annual Report Highlights • Clean Audit Report. • Clean Sharia’a Report. • Gross Revenues Increase by 44% as compared to LY. • Core Investment Portfolio Revenues increased by 94% as compared to LY. • Liquid Investment Portfolio Revenues decreased by 42% as compared to LY. • Expenses increased by 18% as compared to LY. • Net Profit Increase by 167% as compared to LY. • Members’ Equity Increase by 11% as compared to LY.

  27. 3 Years Balance Sheet

  28. 3 Years Income Statement

  29. Ratios - Financials

  30. Performance Comparison Between ICD & Similar Institutions IIC: Inter-American Investment Corporation AFIC: Asian Finance & Investment Corporation

  31. Thank you

  32. Back-up Slides

  33. Modes of Financing • Leasing (Ijara) • ICD buys capital goods and gives the beneficiary usufruct rights for a period of time against payment of fixed periodical rentals. Repayment can start after a grace period. Ownership is transferred at the end of the rental period. • Installment Sale • ICD buys capital goods and resells them to the beneficiary at a price agreed by the two parties. The repayment is made through consecutive installments. A grace period can be accorded. • Sale Contract (Istisna’a & Parallel) • Istisna’a is a contract whereby ICD agrees to manufacture/acquire an asset, based on a specific order received from a client, and then, once manufactured, sells the said asset (through installments), to that client for an agreed price.

  34. Modes of Financing • Equity • This is the purest form of Islamic financing where ICD would share the project’s risks and benefits. • Quasi – Equity • ICD can provide for a term financing facility that could be converted (at certain conditions) into equity, at some stage of the project life.

  35. Net Accumulated approvals in USD m Net of cancelled Projects

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