Islamic Development Bank
Banque Islamique de Developpement
‫البنك االسالمي للتنمية‬
1
Overview & Investment Highlights
Supranational
Development
Bank
AAA Rating
from all 3
Agencies
Committed
Shareholders
Preferred
Creditor Status
Diverse
Markets and
Products
Highly
capitalised
Conservative
Risk
Management
0% Risk
Weighting under
Basel II & European
Commission
2
Introduction
Islamic Development Bank
» Established in 1975 by agreement between 22 member countries and headquartered in Jeddah,
the Kingdom of Saudi Arabia
» Regional offices in Kazakhstan, Malaysia, Morocco and Senegal
» Field representatives in several Member Countries
» Currently 56 member countries from the Middle East, Africa, the Asia Pacific Region, South Asia
and Europe
As of 17 December 2009
Total assets of US$13.7 bn
Authorised capital of US$47.1 bn
Paid up capital of US$5.7 bn
» IDB’s unit of account 1 Islamic Dinar = 1 Special Drawing Right of the IMF (current basket: US$ 44%,
EUR 34%, JPY 11% and GBP 11%)
Rated Aaa/AAA/AAA
» IDB’s financial year is the lunar Hijrah year (11 days shorter than the solar Gregorian year)
56 member countries
» All financial transactions in compliance with Islamic law (Shariah)
1,086 employees
Mission Statement:
“We are committed to alleviating poverty; promoting human development, science & technology, Islamic banking &
finance; and enhancing cooperation amongst member countries, in collaboration with our development partners.”
Ownership
Purpose:
To foster the economic development and social progress of member countries and Muslim communities in non-member
countries in conformity with Shariah.
Priority Areas:
»
Human Development
»
Private Sector Development
»
Agricultural Development & Food Security
»
Intra-Trade among Member Countries
»
Infrastructure Development
»
Research & Development in Islamic Banking & Finance
IDB: The Premier Islamic Finance Institution
3
IDB’s Capital
» Ordinary operations are funded primarily by paid-up capital from IDB’s member countries
» Member countries are irrevocably committed to pay their portion of the subscribed capital
» Calls are made in freely convertible currencies acceptable to IDB
» IDB’s shares cannot be pledged, encumbered, and cannot be transferred to any entity
Capital Structure (in US$ mn) Authorized capital of US$47.1 bn
Called Capital
As of March 2010
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The IDB Group and Operations
IDB Group Operations
»
Ordinary
Capital
Resources
Project Financing
»
Trade
Financing
Waqf Fund
»
Commodity Placement
Technical Assistance
»
Equity
»
Loans
»
Sukuk
»
Insalment Sale
»
Managed Funds
»
Istisna’a (manufacturing)
»
Murabaha
»
Equity Investments
»
Murabaha
Key IDB Group Institutions
»
»
International Islamic
Trade Finance
Corporation: Support
trade finance activities
amongst member
countries
»
Islamic Corporation
for the Development
of the Private Sector:
Support to the private
sector in the Member
Countries
»
Islamic Research and
Training Institute:
Undertake research and
provide training and
information services
The IDB Group also has two affiliated institutions
»
The International Centre for Biosaline Agriculture
»
The Kingdom of Saudi Arabia Project for Utilisation of Sacrificial Animals
IDB: The Premier Islamic Finance Institution
»
Islamic Corporation
for Insurance of
Investment and Export
Credit: Provide
investment protection
and export credit
insurance for Islamic
countries
Other
»
International Islamic
Trade Finance
Corporation
»
Islamic Corporation for
the Development of the
Private Sector
»
Islamic Research and
Training Institute
»
Islamic Corporation for
Insurance of Investment
and Export Credit
»
Islamic Solidarity Fund
for Development
»
The IDB Infrastructure
Fund
»
World Waqf Foundation
»
Awqaf Property
Investment Fund
»
Unit Investment Fund
5
Financial Highlights
(US$ mm)
1430H (17/12/2009) 1429H (28/12/2008)
Total Assets
1428H (9/01/2008)
1427H (19/01/2007) 1426H (30/01/2006)
13,706.237
11,258.555
10,618.498
9,115.284
8,503.742
Total Liabilities
4,453.608
2,829.885
2,220.701
1,932.377
1,836.040
Shareholders Equity
9,252.629
8,428.670
8,397.797
7,182.907
6,667.703
Net Finance Income
571.395
480.437
506.189
399.244
354.040
Net Income
195.984
299.888
258.425
184.279
209.536
Rating
Agency
Rating
AAA
Aaa
Comments » Very strong capitalization and
»
liquidity, and limited use of leverage
»
» Development-related asset portfolio
has performed well
»
» Preferred creditor status from
member countries
» Support from member countries
which include large oil exporters
Strong and expanding capital base
High level of liquidity and low level
of debt
Well performing operational assets,
with a low level of impairment
AAA
» Strong capitalisation and highly
liquid – equity accounts for 90% of
assets
» Good protection against credit risk,
with preferred creditor status giving
it priority over other lenders in the
event of default
» Exceptionally strong support from
member countries
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First Class Financial Strength
Salient Financial Indicators
Strong Capitalization relative to Total Assets
(Equity/Total Assets)
A Profitable Business Model
(Net Profit US$ mm)
Growing Financing Portfolio
(US$ mm)
IDB’s Portfolio vis-à-vis NPL
98.0%
97.6%
97.5%
96.9%
97.0%
96.5%
96.9%
96.2%
96.0%
95.5%
95.5%
95.0%
2005
2006
Operating Assets
Source: IDB Annual Reports 2005–2009.
First Class Financial Strength
Source: IDB Annual Reports 2005 – 2009
2007
2008
2009
Provision for NPL
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Comparison with Other Multilateral Development Banks
A strong credit profile vis-à-vis other Multilateral Development Banks
Islamic Development Bank (IDB)
AAA/Stable
Aaa/Stable
AAA/Stable
Asian Development Bank (ADB)
AAA/Stable
Aaa/Stable
AAA/Stable
Inter-American Development Bank (IaDB)
AAA/Stable
Aaa/Stable
AAA/Stable
African Development Bank (AfDB)
AAA/Stable
Aaa/Stable
AAA/Stable
European Bank for Reconstruction and Development (EBRD)
AAA/Stable
Aaa/Stable
AAA/Stable
International Bank for Reconstruction and Development (IBRD)
AAA/Stable
Aaa/Stable
AAA/Stable
European Investment Bank (EIB)
AAA/Stable
Aaa/Stable
AAA/Stable
Total Debt (US$ bn)
Source: Bloomberg.
First Class Financial Strength
Equity/Total Assets
* IDB Annual Report 2009.
Gross Debt/Equity
Source: Standard & Poor’s Supranationals Speical Edition 2009
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