Al-Arafah Islami Bank Limited (AIBL), a leading Islamic bank in the country, announced on 29 March 2016 its strategic partnership with Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group. With this international footstep, AIBL is expected to attract growth capital of around USD 20 million from ICD through 10% equity subscription in the capital of AIBL.
Mr. Khaled Al Aboodi, the CEO of ICD stated that this strategic initiative reflects ICD’s continuous effort to play a catalyst role in the promotion of Islamic finance and private sector development in Bangladesh. Earlier, ICD committed USD 110 million for the manufacturing, 
textiles & apparels, construction, power sector along with USD 70 million lines of financing for the SME sector in Bangladesh. Proposed collaboration with AIBL exhibits ICD’s long-term vision to bring not only good corporate governance, international best management practice, innovative Islamic products but also to bring stability and confidence in the financial sector in Bangladesh.
Mr. Badiur Rahman, the Chairman of AIBL highlighted with ICD as Islamic multilateral institution, AIBL would materialize its vision having the finest Islamic infrastructure by bringing financial solutions in the liquidity management, capital market products (sukuk), infrastructure, real estate, retail and SME sectors with best risk management framework. Mr. Badiur Rahman further stressed that having ICD as strategic shareholder is the result of the confidence and trust kept on the management and the Board by all the stakeholders over the last 20 years and this new avenue would strengthen rating of the bank and pave the way for extending network with other international Islamic players in the world.
As per term sheet, ICD will invest in the AIBL’s Equity Shares to hold 10% of outstanding no. of Bank’s common equity (after disbursement of Bonus Share for the year 2015 and new issue of share in favor of ICD) through issuance of fresh equity with 110,478,492 shares with an issue price of Tk. 14.00/- valued Tk. 1,546,698,888.00 (Tk. 4/- premium with a face value of Tk. 10/- each) subject to obtaining approval of Regulators and the Shareholders of the Company at the General Meeting, any other Meeting of the Shareholders of the Company or otherwise as permitted under law.
During the ceremony, founder Chairman of the Bank Alhajj A Z M Shamsul Alam, Directors Alhajj Md. Harun-Ar-Rashid Khan, Alhajj Abdul Malek Mollah, Alhajj Hafez Md. Enayet Ullah, Alhajj Abdus Samad, Alhajj A N M Yeahea, Alhajj Engr Kh. Mesbah Uddin Ahmed, Alhajj Niaz Ahmed, Md. Anowar Hossain, Alhajj Md. Liakat Ali Chowdhury, Managing Director Md. Habibur Rahman, Company Secretary, Deputy Managing Directors and other high-officials from both organizations were present.
