CIMB Standard To Manage US$500 Million ln ADB-IDB Fund

July 05, 2009 23:05 PM

CIMB Standard To Manage US$500 Million ln ADB-IDB Fund


DUBAI, July 5 (Bernama) -- CIMB Standard, Asian private equity and infrastructure fund specialists, have been appointed manager and advisor to a new US$500 million (US$1 = RM3.52) Islamic Infrastructure Fund (IIF).

The IIF would receive an initial commitment of US$250 million from its joint sponsors, Asian Development Bank (ADB) and Islamic Development Bank (IDB), according to a statement issued by key players of the initiative.

CIMB Standard is a joint venture between Standard Bank and Malaysia's CIMB Group.

Standard Bank is a leading African financial services group and its Middle East operations are based at the Dubai International Financial Centre.

The statement said the IIF, billed as Asia's first major multi-country Islamic infrastructure fund, would make syariah-compliant equity investments in emerging countries in Asia with significant infrastructure opportunities to meet their developmental needs.

Among such countries are Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Malaysia, Pakistan and other member countries common to both ADB and IDB.

The IIF will also help bridge the gap between Islamic investors who require syariah-compliant products and project sponsors who need capital to build crucial infrastructure.

CIMB Group chief executive Datuk Seri Nazir Razak said, as Asia sought to claim a greater share of the world economic pie, heavy emphasis would be placed on its infrastructure development to facilitate sustainable economic growth.

"With demand for such investments estimated to exceed US$8 trillion in the coming decade, we are very confident about the appetite for this new fund," he said.

IDB's director of country operations department (Asia) Dr Walid Abdelwahab said IDB expected the IIF to attract capital from the Islamic world, notably the Middle East.

"There's still a substantial amount of wealth in that region and investors there are increasingly interested in putting their money to work in a way that complies with their faith," he said.

-- BERNAMA