husain mugaibel - isdb's approach to sustainable energy financing

7/31/2019 Husain Mugaibel - IsDB's Approach to Sustainable Energy Financing

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I s l a m i c D e v e l o p m e n t B a n K 1

Overview of Islamic Development Bank

Established in 1975 to foster socio-economic

development in Member Countries A Unique Model ofSouth-South Cooperation

Global MDB: Membership 56 Countries spread

over 4 continents

Total Assets : US$ 14.2 billion

Authorized Capital : US$ 47.0 billion

Paid-up Capital : US$ 6.3 billion

Rated: AAA Rating by Moodys, Fitch

and S&P. Zero-Risk Rating by the EU


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Islamic Development

Bank (IsDB)Foster the economic

development and

social progress of MCs

and Muslim

communities.

International Islamic

Trade Financing

Corporation (ITFC)Promote and enhance

intra-trade and trade

cooperation through

trade finance and

promotion programs

Islamic Corporation

for the Development

of the Private Sector

(ICD)Promote development

of private sector

development.

Islamic Research &

Training Institute

(IRTI)Undertake applied &

basic research in

Islamic Economics and

Finance.

Islamic Corporation

for Insurance of

Investment &

Export Credit (ICIEC)Provide export credit

insurance, political risk

insurance, technical

assistance.

The IDB Group

Islamic Banking Compliance

1975 19811994 19992008


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Overview of Islamic Development Bank

2008 2009 2010 2011

Net approvals of IDB GroupUS$78 billion by end-1432H/2011G


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IDB Active Energy PortfolioSectoral Distribution

Equator

35o N

35o S

Generation -

Conventional

46%

Generation -

Renewables

16%

Transmission &

Distribution

30%

Other

8%

41%

35%

10%14%

Asia


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IDB Energy Policy in the making

Infrastructure

Strategic Plan2009-12

IDB Vision

2020

Regional

Energy

Interventions

National

Energy

Interventions

Energy Sector

Policy

Country

Programming(MCPS/Energy)

Member Countries Needs & Priorities

Building on existing strengths but greater focus on:# Energy Poverty

# Sustainable Energy Development (RE & EE)

# Knowledge Services


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Renewables to address Energy Poverty

Energy

For Basic Needs

Energy Infrastructure

For Economic Growth

Off-Grid

Electrification

Mini Grids

Regional

Cooperation

Access to

the GridT&D

Infrastructure

Generation

Infrastructure

Home-based

Systems


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Recent InitiativesReverse Linkage on RE for the Poor

First Workshop in Feb 2012 in Jeddah

RE Experts Exposure Visit to Turkey in Sept 2012

Interventionsto strengthen

cooperation

Sharing

knowledge,experiences

and best

practices

Strategic

cooperationleading to

economic

integration

IsDB 6 SSA MCsTurkey


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Financing PartnershipsMulti-Country Regional Funds

Ex: Arab Financing Facilityfor Infrastructure (AFFI)

IsDB, WB, IFC

MENA region

Public and private windows for infrastructure funding

Technical Assistance Facility (TAF) for PPP

Growing awareness on Sustainable Energy Development in theMENA Region

- Commitments to RE and EE

- Solar for desalination



ICD Central Asia RE Fund in the makingInvesting in a Portfolio of RE Assets

Investment in infrastructure

development as well as

corporate private equity

Investment in Small Hydro,

Geothermal, Biomass, Wind

Farms and Solar Plants

Investment in companieswhose core activity is to

provide renewable energy

related products and services



IDB Energy Financing

Public Financing by IsDB (sovereign guarantee) Up to US$ 225 million per project (up to US$ 450

million in multi-tranches)

Very concessional to LDCs (loan): Tenor up to 25

years; administrative fee only during implementation

Other concessional lending: Tenor up to 15 years Grants for TA

PPP financing by IsDB US$ 120 million for PPP

Tenor depends on the project characteristics and

risks, etc. Private sector financing by ICD
http://www.afdb.org/portal/page?_pageid=293,158705&_dad=portal&_schema=PORTAL&focus_item=21062241&focus_lang=us



The IDBs Approach

to Sustainable Energy Financing

Islamic Development BankInfrastructure Department

Jeddah, S. Arabia

Website:http://www.isdb.org
http://www.isdb.org/http://www.isdb.org/http://www.isdb.org/http://www.isdb.org/

husain mugaibel - isdb's approach to sustainable energy financing

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