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Islamic Development Bank Banque Islamique de Developpement البنك الاسلامي للتنمية 1
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Overview & Investment Highlights Diverse Markets and Products Supranational Development Bank AAA Rating from all 3 Agencies Preferred Creditor Status Highly capitalised Committed Shareholders Conservative Risk Management 0% Risk Weighting under Basel II & European Commission Introduction 2
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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 »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%) »IDB’s financial year is the lunar Hijrah year (11 days shorter than the solar Gregorian year) »All financial transactions in compliance with Islamic law (Shariah) 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.” 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 »Agricultural Development & Food Security »Infrastructure Development »Private Sector Development »Intra-Trade among Member Countries »Research & Development in Islamic Banking & Finance IDB: The Premier Islamic Finance Institution Ownership As of 17 December 2009 Authorised capital of US$47.1 bn Rated Aaa/AAA/AAA Paid up capital of US$5.7 bn 56 member countries 1,086 employees Total assets of US$13.7 bn 3
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Capital Structure (in US$ mn) Authorized capital of US$47.1 bn As of March 2010 »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 IDB’s Capital Called Capital 4
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The IDB Group and Operations Key IDB Group Institutions IDB: The Premier Islamic Finance Institution »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 »Islamic Corporation for Insurance of Investment and Export Credit: Provide investment protection and export credit insurance for Islamic countries »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 Group Operations »Project Financing »Technical Assistance »Loans »Insalment Sale »Istisna’a (manufacturing) »Equity Investments »Murabaha »Commodity Placement »Equity »Sukuk »Managed Funds »Murabaha Waqf Fund Trade Financing Ordinary Capital Resources 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
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Financial Highlights Rating Agency RatingAAAAaaAAA 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 »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 First Class Financial Strength (US$ mm)1430H (17/12/2009)1429H (28/12/2008)1428H (9/01/2008)1427H (19/01/2007)1426H (30/01/2006) Total Assets13,706.23711,258.555 10,618.498 9,115.284 8,503.742 Total Liabilities4,453.608 2,829.885 2,220.701 1,932.377 1,836.040 Shareholders Equity9,252.629 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 Income195.984 299.888 258.425 184.279 209.536 6
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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) Source: IDB Annual Reports 2005–2009. First Class Financial Strength IDB’s Portfolio vis-à-vis NPL Source: IDB Annual Reports 2005 – 2009 7
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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/StableAaa/StableAAA/Stable Asian Development Bank (ADB)AAA/StableAaa/StableAAA/Stable Inter-American Development Bank (IaDB)AAA/StableAaa/StableAAA/Stable African Development Bank (AfDB)AAA/StableAaa/StableAAA/Stable European Bank for Reconstruction and Development (EBRD)AAA/StableAaa/StableAAA/Stable International Bank for Reconstruction and Development (IBRD)AAA/StableAaa/StableAAA/Stable European Investment Bank (EIB)AAA/StableAaa/StableAAA/Stable Total Debt (US$ bn)Equity/Total AssetsGross Debt/Equity Source: Bloomberg.* IDB Annual Report 2009.Source: Standard & Poor’s Supranationals Speical Edition 2009 First Class Financial Strength 8
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