Monday, September 8, 2014

BTMU Malaysia-ICD financing agreement marks growing internationalization of Islamic finance


Islamic Finance news Alert
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Monday, 8th September 2014

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GLOBAL: Bank of Tokyo-Mitsubishi UFJ (Malaysia) and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IDB, today signed a US$100 million commodity Murabahah agreement, to be utilized alongside ICD proprietary capital to finance projects in its member countries. The agreement signifies a crucial milestone for BTMU Malaysia as it is the first ever financing to be signed by the Japanese bank with a multilateral international financial entity such as the ICD; and highlights the growing internationalization of Islamic finance.

“This signing marks another achievement for BTMU Malaysia in expanding our Islamic financing business. We are committed to work closely with ICD and support each other especially in the areas of technical assistance and potential business opportunities. We welcome and look forward to further opportunities to collaborate with ICD in its effort to support private initiated economic development projects in its member countries,” said Naoki Nishida, CEO of BTMU Malaysia.

The landmark agreement, which follows the MoU signed between the two parties in April under which they have agreed to form a joint strategic collaboration to tap opportunities in the rapidly growing industry of Shariah compliant finance, opens up new avenues for scaling up ICD financing in its member states. It also reflects ICD’s growing global presence and solid commitment to promote cross-border Islamic investment as the organization continues to create linkages with non-traditional markets from the Asia Pacific region.

“Japan has shown growing interest to further develop its Islamic finance industry with the signing of today’s Murabahah agreement between the ICD and BTMU Malaysia. We are delighted with this initiative and it has also cemented our view of Malaysia as the Islamic finance hub from where we can engage in new relationships with non-traditional partners in the region,” said Khaled Al Aboodi, CEO of the ICD.
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