Baku, Azerbaijan, Apr. 28
By Azad Hasanli - Trend:
The Islamic Corporation for the Development of the Private Sector (ICD) will open a new source of financing for agricultural sector of the Islamic countries, including Azerbaijan until late 2016 by means of the ICD Food & Agribusiness Fund.
The ICD mission will visit Azerbaijan in May 2016 to discuss financing of potential projects in agricultural sphere through the ICD Food & Agribusiness Fund, the source on the country's financial market told Trend.
"ICD Food & Agribusiness Fund's authorized capital will amount to $600 million," said the source.
"The rest funds are planned to be drawn by the middle of 2016," the source said. "Currently, the corresponding negotiations are being held with the financial institutions."
The ICD Food & Agribusiness Fund will finance the full food chain and value chain in such areas of agriculture, as various chemicals and fertilizers, infrastructure, services, trade, logistics and others, according to the source.
"The ICD Food & Agribusiness Fund will mainly focus on optimization of production of the companies operating in the field of agriculture, reduction of these companies' waste, logistical inefficiency," the source said.
The fund will help commercial and agro-industrial companies to increase profit, promote the development of the food industry and the agro-industrial sector.
"The ICD will also become a shareholder [given 30 percent equity participation] of the fund's manager - the SALT Investment Partners Limited company, which will be established in Dubai," said the message of the source.
The ICD has been operating in Azerbaijan since 2003. ICD finances mainly small and medium enterprises in the country. The corporation is the founder of Ansar Leasing and co-founder of the Caspian International Investment Company.
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is part of the Islamic Development Bank (IDB) Group.
ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and encouraging cross border investments.