DUSHANBE, January 4, 2016, Asia-Plus – According to press release issued by the Islamic Corporation for the Development of the Private sector (ICD) on January 4, ICD and Open Joint-Stock Company (OJSC) Agroinvestbonk of Tajikistan have signed a memorandum of understanding (MoU) for cooperation to consider extension of a Line of Financing facility to OJSC Agroinvestbonk as part of the country program allocation of USD 25 million for Tajikistan.
The Line of Financing facility will be extended by OJSC Agroinvestbonk to the SMEs sector to project”s in industrial, communication, technology, health, construction and agricultural sectors.
In this occasion Mr. Khaled Al Aboodi, the CEO and General Manager of ICD, commented: “The small and medium sized enterprises (SMEs) have a crucial role to play in a country’s growth and development, and ICD has big plans for them. This is an important sector in all the member countries, including the higher income ones. ICD is now focusing on this sector by extending lines of finance to local banks in addition to the establishment of ASR Leasing Company in Tajikistan (a company specialized to provide Shariah compliant leasing products to the SME sector.”
Previously ICD extended a total of USD 11.5 million Line of Financing facility for the development of Small and Medium Enterprises in Tajikistan which demonstrates ICD’s firm commitment to develop the private sector in its member countries.
With regards to this event the Chairman of OJSC Agroinvestbonk has commented: “The close and mutual fruitful cooperation between Agroinvestbonk and ICD positively affects the development of the economy of the Republic of Tajikistan through financing SMEs in key sectors such as agricultural, industry, construction and etc. The Islamic banking products have a huge potential to meet the increasing demand for long term financing of SME in Tajikistan. In this regard, the signing of present MoU is a step towards strengthening and deepening our further collaboration in context of development of the economy of Tajikistan and enabling SMEs access to finance.”
Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, has main branches in Khorog, Khujand, Kulob and Qurghon Teppa and more than 60 other branches across the republic.
Agroinvestbonk is one of the leading providers of finance to micro, small and medium-sized enterprises and the agricultural sector in Tajikistan. Through its substantial rural network it reaches out beyond the capital Dushanbe, to areas where access to finance remains difficult for private entrepreneurs.
The government now owes 52 percent of shares and the remainder is owed by initial founders, whose share decreased after the recapitalization.
The European Bank for Reconstruction and Development (EBRD) in August 2009 acquired a stake of 25 percent + 1 share in Agroinvestbonk for up to 50 million somoni in order to strengthen the capital base of Agroinvestbonk and support its growth and further development.
In 2012, the government made a decision on recapitalization of Agroinvestbonk and injected 700 million somoni in the bank. 200 million somoni went to replenishing the bank authorized capital stock and 500 million somoni were assigned for the swap.
Murodali Alimardon, who had previously served as Deputy Prime Minister, was appointed to head Agroinvestbonk on April 1, 2015, replacing Suyunkhon Rustamov.
ICD is a multilateral organization and a member of the Islamic Development Bank (IsDB) Group. Its shareholders include the IsDB, 52 member countries, and five public financial institutions. Established by the IsDB Board of Governors in November 1999, ICD is headquartered in Jeddah. ICD is rated AA by Fitch Ratings in November 2014.
The mandate of ICD is to support the economic development of its member countries through provision of finance and equity investments to private sector projects in accordance with the principles of Islamic finance. ICD finances and invests in projects that are specifically geared to creating employment opportunities and boosting exports. Furthermore, ICD mobilizes additional resources for projects and encourages the development of Islamic financing and capital markets. It also attracts co-financiers for its projects and provides advice to governments and private sector groups on policies aimed at encouraging the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhancing the role of market economy.
