ICD Inks US$300 Million Commodity Murabahah Financing Deal With Mizuho Bank

KUALA LUMPUR, April 10 (Bernama) -- The Islamic Corporation for the Development of the Private Sector (ICD) inked a US$300 million Commodity Murabahah financing agreement with Mizuho Bank (M) Bhd here Monday. ICD is the private sector arm of the Islamic Development Bank (IDB) Group based in Jeddah, while Mizuho Bank is a unit of Japan-based Mizuho Bank Ltd. The financing agreement entails a two-year term and is for the purpose of funding ICD's projects in selected member countries. Meanwhile, the Murabahah agreement is the first cross-border bilateral Islamic facility for Mizuho Bank. ICD Chief Executive Officer Khaled Al Aboodi said the organisation had 57 member-countries around the world and with the US$300 million financing, about 15 companies would obtain funding benefits at an average US$20 million per project. "The collaborative effort is expected to strengthen the relationship between ICD and non-traditional partners in this region," he told reporters at the signing of the agreement here Monday. Khaled, who is also the General Manager, said ICD is committed to supporting Japan as the country works toward further developing its Islamic finance capabilities. "The mandate of the ICD is to support economic development and promote the development of the private sector in member countries through providing financial facilities and/or investments which are in accordance with Shariah principles," he added. ICD also provides advice to governments and private organisations to encourage the establishment, expansion and modernisation of private enterprises. Meanwhile, the financing agreement is the first Islamic facility for Mizuho. The bank said there are more in the pipeline this year, but declined to state figures. For the financing agreement signed on Monday, Mizuho Bank (Malaysia) was represented by its Deputy Chief Executive Officer, Shinichi Nishiyama. The bank was established in 2011 and its parent, Mizuho Bank Ltd, has 960 offices in 34 countries worldwide and a share capital of 1,404 billion Japanese Yen. --BERNAMA