The Islamic Development Bank Group has launched the $2 billion Islamic Development Bank Infrastructure Fund II. The fund has raised $750 million from the Public Pension Agency of the Kingdom of Saudi Arabia, the Public Investment Fund of the Kingdom of Saudi Arabia, the Ministry of Finance of the Kingdom of Bahrain and the Ministry of Finance of the Sultanate of Brunei Darussalam. A final closing is targeted for early 2015. Fund I raised $730 million.
His Excellency Dr. Ahmad Mohamed Ali, President of the Islamic Development Bank (IDB) Group, announced the launch of the US$2 billion Islamic Development Bank Infrastructure Fund II (the IDB Fund II), on the occasion of the 40th anniversary of the IDB. The IDB Fund II is the largest private equity infrastructure fund dedicated to the 57 member countries of the IDB.
The IDB Fund II is supported by the Public Pension Agency of the Kingdom of Saudi Arabia, the Public Investment Fund of the Kingdom of Saudi Arabia, the Ministry of Finance of the Kingdom of Bahrain and the Ministry of Finance of the Sultanate of Brunei Darussalam as founding investors, with aggregate commitments totaling US$750 million for the first closing. A final closing with additional investors is targeted for early 2015.
The IDB Fund II is the successor to the US$730 million IDB Infrastructure Fund I (the IDB Fund I), also supported by the founding investors, which achieved an IRR of 18% and an investment multiple of 1.7 times across signature projects such as AirAsia in Malaysia, Saudi International Petrochemical Company (SIPCHEM) in Saudi Arabia and AES Oasis Ltd with power assets in Pakistan, Oman and Jordan.
H.E. Dr. Ahmad Mohamed Ali said, “Building on the successful track record of IDB Fund I, the IDB and founding investors are nearly tripling the size of the IDB Fund II to US$2 billion. The fund will mobilise up to US$24 billion of aggregate financing to support the development of key infrastructure projects in IDB member countries.”
IDB and the founding investors have established ASMA Capital Partners B.S.C (c), based in the Kingdom of Bahrain, as a multi-fund asset management platform to manage the IDB Fund II. The Chairman of ASMA Capital is the President of the IDB Group, and the Vice Chairman is H.E. Mohammed Al-Kharashi, the Governor of the Public Pension Agency of the Kingdom of Saudi Arabia,H.E. Dato Paduka Haji Bahrin bin Abdullah, Deputy Minister of Finance of the Sultanate of Brunei Darussalam. The other Board Members are Mr. Abdulla Ebrahim Al Ayadhi, Assistant Secretary General of the Public Investment Fund of the Kingdom of Saudi Arabia and Mr. Sami Mohammed Humaid, Director of Foreign Economic Relations of the Ministry of Finance of the Kingdom of Bahrain. The management team is led by the CEO of ASMA Capital, Mumtaz Khan, who previously managed the IDB Fund I.
H.E. Mohammed Al-Kharashi said, “ASMA Capital is expected to play a significant role in assisting pension funds and other global investors seeking to deploy capital into infrastructure projects in select emerging markets for portfolio diversification and stable return.”
The IDB Fund II will have a broad sectorial focus beyond core infrastructure sectors of power, telecommunications, transportation, and will include investment in oil and gas, refinery and petrochemicals, steel and aluminum, mining, logistics and an allocation for healthcare, education, and financial services.
Mumtaz Khan said, “The IDB Fund II is a unique platform combining the strength of IDB and other founding investors with an experienced management team to identify and develop investment opportunities across multiple regions.”
SOURCE ASMA Capital Partners