CIMB Standard, Asian private equity and infrastructure fund specialists, have been appointed manager and advisor to a new US$500 million Islamic Infrastructure Fund, jointly sponsored by the Asian Development Bank (ADB) and the Islamic Development Bank (IDB). CIMB Standard is a joint venture between Standard Bank and CIMB Group. Standard Bank is a leading African financial services group and its Middle East operations are based at the Dubai International Financial Centre (DIFC).
The Islamic Infrastructure Fund (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. Amongst such countries are Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Malaysia, Pakistan and other member countries common to both ADB and IDB.
The IIF will receive an initial commitment of US$250 million from the joint Sponsors - 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 US$8 trillion in the coming decade, we are very confident about the appetite for this new fund" said CIMB Group Chief Executive, Dato' Sri Nazir Razak at the launch of the fund. He added "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".
The CIMB Standard senior management team is ideally suited to lead this new initiative. The team includes private equity and infrastructure specialists with proven track records in the Asian region. The team's ability has been demonstrated via CIMB Standard's already successful private equity vehicle, The South East Asian Strategic Assets Fund (SEASAF), a US$150 million fund focusing on energy and infrastructure in the Southeast Asian region.
Nicholas Hamilton, Standard Bank's Chief Executive of the Asia Pacific region said "Today's launch of the IIF marks a significant milestone in our partnership with CIMB Group, which began in 2006, and is now a leading investor in Malaysia and Southeast Asia. As a recognised specialist emerging market bank, we are able to leverage on our global network to ensure long-term sustainability. Together with CIMB Group's vast network and experience in Islamic banking, we firmly believe in the success of our joint venture."
ADB's Private Sector Operations Department, Director of Capital Markets & Financial Sector Division, Robert van Zweiten, said, "Infrastructure in many of the countries that are members of both ADB and IDB is less developed than the Asian average. We expect the fund to help channel investments into critical infrastructure projects in the region which will, in turn, will improve the prospects for economic growth and poverty reduction."
Meanwhile, IDB's Director of Country Operations Department (Asia) Dr. Walid Abdelwahab, said that IDB expects the IIF to attract capital from the Islamic world, notably the Middle East. "There is still a substantial amount of wealth in that region and investors there are increasingly interested in putting their money to work in a way that complies with their faith."
The two development banks announced the prospective launch of the IIF during the annual meeting of IDB's board of governors in Ashgabad, Turkmenistan recently.
-Ends-About CIMB Standard
CIMB Standard, established in 2006 to advise private equity funds, is a joint-venture between CIMB Group, Malaysia's second largest financial services provider, and Standard Bank, one of the world's leading emerging markets banks, to advise private equity funds established in 2006. Headquartered in Kuala Lumpur and Singapore, CIMB Standard specialises in deals in the energy and infrastructure sectors in the Asian region. CIMB Standard is also the adviser of The South East Asia Strategic Assets Fund L.P. ("SEASAF"), a US$ 150m private equity fund focusing on energy, infrastructure and natural resources in Southeast Asia.
About CIMB Group
CIMB Group is Malaysia's second largest financial services provider and one of Southeast Asia's leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, its key regional offices are located in Singapore, Indonesia and Thailand.
CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the majority shareholder of Bank CIMB Niaga in Indonesia, and the single largest shareholder of BankThai in Thailand.
CIMB Group is owned by Bumiputra-Commerce Holdings Bhd, which is listed on Bursa Malaysia with a market capitalisation of approximately US$8.93 billion as at 14 May 2009. The Group has over 36,000 employees located in nine countries.
Standard BankStandard Bank is a leading African banking group focused on emerging markets globally. It has been a mainstay of South Africa's financial system for over 145 years, and now spans 17 countries across the African continent. Its international expansion has taken it to 16 countries outside Africa including Brazil, Russia and China. Its headquarters are in Johannesburg and it is listed on the Johannesburg Stock Exchange.
Standard Bank's Corporate and Investment Banking division is a leading global emerging markets corporate and investment bank and offers its clients banking, trading, investment, risk management and advisory services in developing economies throughout the world. It has specific sector expertise in industries relevant to its global footprint, with strong sector value propositions in: mining and metals, oil, and gas, & renewables, telecommunications & media, power, & infrastructure and financial institutions.
Standard Bank Plc in London is the bank's principal international subsidiary. It is authorised and regulated by the Financial Services Authority, and is a member of the London Stock Exchange, the London Bullion Market Association, the London Metal Exchange, the London Platinum and Palladium Market and the New York Mercantile Exchange (COMEX Division). Through its branch in Tokyo, it is also a member of the Tokyo Commodities Exchange (TOCOM). It has major trading affiliates in Brazil (Banco Standard de Investimentos S.A.), Argentina (Standard Bank Argentina S.A.), and Hong Kong (Standard Bank Asia Ltd.)
Standard Bank Plc, Dubai branch is regulated by the Dubai Financial Services Authority and is a recognized company within the Dubai International Financial Centre.
About Asian Development Bank (ADB)
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, and environmentally sustainable growth, and regional integration. Established in 1966, it has 67 countries, with 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.
About Islamic Development Bank (IDB)
IDB, headquartered in Jeddah, Saudi Arabia, started operations in 1975. It has 56 countries and aims to foster the economic development and social progress of member countries and Muslim communities in accordance with Shariah, or Islamic law.
If you have further queries or require more information, please contact:
Manash Bhuyan
FD for Standard Bank
Tel: +971 4 332 8832
Fax: +971 4 332 8388
Email: manash.bhuyan@fd.com
Effendy Shahul Hamid
Head, Group Corporate Communications,
CIMB Group
Tel: +603 2087 3030
Fax: +603 2093 1008
Email: effendy.hamid@cimb.com
Adrian Ong Chu Jin
Head of Islamic Infrastructure Fund
CIMB Standard
Tel: + +603 2093 8949
Email: adrian@cimb-standard.com
Simon Morgan
Director, Private Equity
Standard Bank Plc., London
Tel: +44 (0) 20 7815 4107
Email: simon.morgan@standardbank.com
Karen Lane
Media Relations
Asian Development Bank
Tel: +63 2 632 6138
Mobile: +63 920 938 6487
E-mail: klane@adb.org
© Press Release 2009
