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Sierra Leone Business: UTB gets $6m from Islamic Corporation for Development

Chief Executive Officer, of ICD  Dr. Khaled Al-Aboodi

Chief Executive Officer, of ICD
Dr. Khaled Al-Aboodi

Following extensive discussions and due diligence activities over the last six months, the Islamic Corporation for the Development of the Private Sector (ICD), the private sector subsidiary of the Islamic Development Bank (IDB) has approved a Line of Credit in an amount of US$6,000,000 (six million USDollars) for the lending operations of Union Trust Bank Limited (UTB).
In a letter from the Chief Executive Officer, of ICD, Dr. Khaled Al-Aboodi addressed to the Chief Executive Officer of UTB, dated 6th April 2017, the ICD declared the effectiveness of the facility and advised that disbursements would now be made from the facility.
The ICD emphasized that after a thorough due diligence on the corporate governance structure of UTB and subsequent successful stress tests of its various operational activities and lending program, including its sound Environmental and Social Management System (ESMS) policy, it is convinced that the Line of Credit will be properly and efficiently managed.  It also endorsed the attractiveness of the bank to both foreign investors and development finance institutions such as the IDB, based on the soundness of the bank’s corporate structure, its efficient management and the relevance of its business model, particularly in its efforts at financial inclusion countrywide.  The Line of Credit which is specifically geared to on-lending in the real sector of the economy is intended to target pro-growth sectors in productive activities in sectors such as agriculture, fisheries, poultry development and food security.
Given the bank’s operational network of branches and agencies throughout the country, there is no doubt that this facility will positively impact many small-scale entrepreneurs and other economic activities throughout the whole country.
Commenting on the successful discussions and the qualifications of the bank in accessing such funding, the Chief Executive Officer of UTB, Dr. J. Sanpha Koroma, noted that in his view, the approval of such facilities is based purely on the attractiveness of the bank to investors predicated on the soundness of the bank’s Corporate Structure, the professionalism of its Management and the relevance of its Business Model in the economic development of the country.
He committed to ensuring that every sector and every deserving entrepreneur will benefit meaningfully from the proceeds of the Line of Credit.
ICD is a multilateral organization and a member of the Islamic Development Bank (IsDB) Group. Its authorized capital stands at $2.0 billion, of which $1.0 billion is available for subscription.
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.
Monday April 10, 2017.

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