Islamic Development Bank establishes $50m renewable energy fund


The Islamic Development Bank has launched a $50m renewable energy investment fund to finance projects in Central Asia.

Through its private sector arm, the Islamic Corporation for the Development of the Private Sector, it has also indicated it was considering financing farming projects in Kazakhstan from its $600m agribusiness vehicle, according to Reuters.

The dedicated renewable energy fund is now potential solar and wind deals and a source told Reuters that it already has commitments from government and institutional investors for about half of the capital it wants to raise.

ICD Chief Executive Khaled Al-Aboodi said, “There are Gulf countries which have the capital but lack the agricultural resources, while there are countries in Central Asia, Africa, which have the resources but not the capital. This fund will try to bridge the gap.”

The Islamic Development Bank is already active in renewable energy through the Islamic Infrastructure Fund, which was launched in partnership with the Asian Development Bank.

Through this, it has helped financing two wind farms in Pakistan in a transaction that closed in March 2011.

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