ICD Signs 13 Landmark Agreements to Strengthen Private Sector Growth Across Member Countries
The Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank (IsDB) Group, has announced the signing of 13 significant financing and strategic cooperation agreements. These agreements aim to enhance economic development and support private sector initiatives across various member countries. The agreements were formalized during the 2026 Annual Meetings of the IsDB Group in Baku, Azerbaijan, under the theme “Regional Integration for Sustainable Prosperity.” This event provided a platform for member countries to engage in dialogue and cooperation focused on regional connectivity, resilience, and inclusive growth.
Framework for Shariah-Compliant Financing in Azerbaijan
In alignment with its mandate to support private sector growth, the ICD has partnered with the Azerbaijan Business Development Fund (ABDF) to launch a managed Shariah-compliant financing program for small and medium-sized enterprises (SMEs). This framework agreement, signed during the Private Sector Forum at the IsDB Group Annual Meeting, aims to deploy up to AZN 200 million within the next two years. The program will introduce a local currency financing channel, allowing the ICD to blend ABDF’s AZN funds with its own USD, EUR, and AZN resources. This initiative is expected to mitigate foreign exchange risks that have historically impeded the growth of Azerbaijani SMEs, particularly those located outside major urban centers.
Strategic Cooperation with SOCAR
The ICD has also signed a Memorandum of Understanding (MoU) with the State Oil Company of the Azerbaijan Republic (SOCAR). This strategic cooperation aims to facilitate financing for infrastructure and energy projects in Azerbaijan and other member countries through existing public-private partnership (PPP) frameworks. The two parties will identify and evaluate financing opportunities for project companies established by SOCAR and its joint venture partners, with the ICD providing tailored financing solutions.
Expanding Financing Facilities in Nigeria and Cameroon
In Nigeria, the ICD has signed a Mandate Letter with the Nigerian Export-Import Bank (NEXIM) for a USD 50 million syndicated line of financing facility. This arrangement is intended to support eligible private sector entities in Nigeria. Additionally, the ICD has signed an Expression of Intent Letter for a proposed EUR 50 million Line of Financing Facility with Afriland Bank in Cameroon, as well as a Final Term Sheet for a EUR 20 million line of finance facility with AFG Bank. These agreements are designed to facilitate onward financing for SMEs and other eligible private sector companies in Cameroon.
Diversifying Financial Support Across Member Countries
To diversify its portfolio, the ICD has entered into a Murabaha Facility Agreement with Al Salam Bank of Bahrain for a USD 50 million Line of Finance Facility. This facility will support eligible companies in Bahrain that contribute significantly to the growth of SMEs and the private sector. Furthermore, the ICD has signed a strategic MoU with the DAMU Entrepreneurship Development Fund of Kazakhstan to identify and develop financing opportunities for SMEs and private-sector entities in Kazakhstan.
In a related initiative, the ICD has partnered with KAZAGROFINANCE JSC to extend thematic agri-sector linked financing facilities to farmers in Kazakhstan under the Ministry of Agriculture’s subsidy program.
Enhancing Credit Portfolio through Strategic Partnerships
The ICD has also signed a strategic Expression of Intent Letter with the African Solidarity Fund (FSA) in Mauritania, aimed at enhancing their partnership through the use of FSA’s guarantees as credit enhancement for ICD’s financing operations in selected member countries. Additionally, a Strategic MoU with the Texel Group of the UK has been established to enhance credit portfolio management through insurance. This collaboration aims to combine ICD’s financing capabilities with Texel Group’s expertise in structuring and placement, thereby optimizing capital allocation and mobilizing additional financing into priority sectors.
These agreements signify a major advancement in the ICD’s efforts to promote sustainable economic growth and financial inclusion across its member countries. By strengthening partnerships with key financial institutions and development partners, the ICD continues to play a vital role in fostering private sector growth and development.
Source: www.zawya.com
About the Islamic Corporation for the Development of the Private Sector (ICD):
The Islamic Corporation for the Development of the Private Sector is a multilateral development financial institution and a member of the Islamic Development Bank Group. Established in November 1999, ICD supports economic development in its member countries by promoting the establishment, expansion, and modernization of private enterprises through financing and cross-border investments. ICD is rated A+ by Fitch, A2 by Moody’s, and A- by S&P.
For more information, visit www.ICD-PS.org.
Read all the latest developments and breaking updates in the Latest News section.
Published on 2026-06-25 13:30:00 • By the Editorial Desk
