BAKU, Azerbaijan, February 9, 2015/African Press Organization (APO)/ — The Islamic Corporation for the Development of the Private Sector (“ICD”) (http://www.icd-idb.com), the private sector arm of the Islamic Development Bank Group (“IDB”), has consolidated on its already significant support of Islamic finance in the Central Asian region, with the signing of a new agreement with leading Azerbaijani microfinance institution VisionFund AzerCredit (“VF AzerCredit”). The objective is to provide advisory services with the aim of developing a comprehensive Shariah compliant microfinance solution for the country.
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Vision Fund AzerCredit was established in 1996 as a program of World Vision Azerbaijan, a relief organization created to provide credit to underprivileged and disenfranchised people and offer them the opportunity to control their own finances and future. In 2002, VF AzerCredit was successfully registered as a Limited Liability Company in Azerbaijan, following which it obtained a central banking license in 2003. Its work emphasizes the provision of loans to small and micro entrepreneurs in rural areas, especially those remote regions which remain largely unbanked, through 45 outlets in 38 districts. With more than 80,000 borrowers and a portfolio of over US$83 million, the group is a leader in the Azerbaijani microfinance field and the perfect partner for the private sector investment activities of the ICD.
The ICD is one of the primary drivers of Islamic finance and private sector growth in the Central Asian region, and has conducted a number of previous projects in Azerbaijan: a 2013 US$3 million SME financing agreement with local lender Muganbank, a stake in the country’s first Takaful venture, and multiple loans and SME allocations to Azerbaijani banks, institutions and projects. As of 2014 ICD had already invested over US$ 99.3 million in Azerbaijan’s economy. The investment was directly in development project like Baki Plaza project and through lines of finance to the International bank of Azerbaijan (IBA), Rabita Bank, UniBank, Demir Bank, Mugan Bank, Amrah Bank, Standard Bank and Turan Bank. ICD is also a stakeholder (along with the Azerbaijan Investment Company) in the Caspian International Investment Company (CIIC).
The VF AzerCredit agreement represents the latest step in the ICD’s comprehensive program to support and develop the growth of the private sector in one of the most promising new regions of the Islamic global economy.
Distributed by APO (African Press Organization) on behalf of The Islamic Corporation for the Development of the Private Sector (ICD).
For further information please contact:
Nabil Al-Alami
Head, Marketing
Islamic Corporation for the Development of the Private Sector
E-mail: nalami@isdb.org
Website: www.icd-idb.org
About VF AzerCredit
VF AzerCredit was initially created in 1996 to provide credit to small and micro entrepreneurs in Azerbaijan, especially in rural and unbanked areas. Its goal is to ensure people can take control over their own lives and livelihoods. In 2002 VF AzerCredit was successfully registered as a Limited Liability Company, and it obtained a Central Bank license in 2003.
About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral organization, part of the Islamic Development Bank (IDB) Group. ICD was established in November 1999 to promote economic development of its member countries in accordance with the principles of the Sharia through private sector development. ICD encourages the establishment, expansion and modernization of private enterprises through financing private sector enterprises or projects. Projects are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operations complement the activities of the IDB.
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