|
GLOBAL:
Education is an area of social development that the IDB has targeted with
particular focus, with over US$30 million in funding approved and
allocated for educational projects since December. The Hyderabad
Institute of Excellence, an Indian school recently established with aid
from the IDB, is an example of the education funding of the bank in
practice, as government and commercial interest in the use of Islamic
finance for education projects grows.
Since December, the IDB has approved over US$1.5 billion in new
financing. Off this, US$32.3 million has been earmarked for use in
educational development in countries such as Bosnia Herzegovina, Guyana,
Thailand and the US. Of the US$4.7 million allocated by the IDB as aid
for Syrian refugees, US$700,000 was flagged as funding for education. In
February this year, US$9 million was approved for 'Basic Education
Support Project in Priority Areas' in Cameroon and this month, the bank
announced the allocation of US$17.8 million, encompassing US$7.5 million
for a project in Burkina Faso and US$10.27 million for another in
Suriname.
In the commercial space, two high profile instances saw the use of Sukuk
to fund the building of schools in 2013: the US$200 million GEMS
Education Sukuk issued in November and, in October, the first Nigerian
Sukuk Ijarah from Osun State for NGN10 billion (US$59.88 million). Last
year, Islamic Bank of Britain also provided funding of GBP400,000
(US$652,276) for the completion and refinancing of development works on
the premises of Al-Meezan, a non-profit organization providing a center
for the promotion and development of Islamic learning in Glasgow,
Scotland.
Given the importance of education, especially in emerging economies, it
is a positive sign that Islamic financing of educational projects
continues to grow. Kunrat Wirasubrata, the head of the IDB regional
office in Kuala Lumpur, outlined to Islamic Finance news the bank’s
commitment to continue in its support: “The appetite to use Islamic
financial products is increasing, so it’s a matter for the IDB and others
who are active in Islamic finance, to capture the opportunity and work
out how to formulate a suitable product to provide financing to the
growing educational sector. We are committed to continue financing and we
are interested to work with partners.”
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.