CIMB Standard, Asian private equity and infrastructure fund company, has been appointed manager and advisor to Asian Development Bank (ADB) and the Islamic Development Bank's (IDB) $500 million (Dh1,837) Islamic Infrastructure Fund (IIF).
CIMB Standard is a joint venture between CIMB Group and Standard Bank – which also has operations in the Dubai International Financial Centre (DIFC).
IIF, Asia's first major multi-country Islamic infrastructure fund, will make Shariah-compliant equity investments in emerging countries in Asia with significant infrastructure opportunities to meet their developmental needs.
The IIF will receive an initial commitment of $250m from the ADB and IDB. The IIF will also help bridge the gap between Islamic investors who require Shariah-compliant products and project sponsors who need capital to build crucial infrastructure. The IIF will adopt a unique investment strategy and seeks to achieve a superior risk-return proposition for investors.
"As Asia seeks to claim a greater share of the world economic pie, heavy emphasis will be placed on its infrastructure development to facilitate sustainable economic growth. With demand for such investments estimated to exceed $8 trillion in the coming decade, we are confident about the appetite for this new fund," said CIMB Group CEO Dato' Sri Nazir Razak at the launch of the fund.
"The majority of private equity funds are focused on large markets such as China and India creating a gap which we intend to fulfil by leveraging on our expertise as a focused regional player".
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