The Road to the SDGs

nuts, cotton and vanilla, although their shares are generally low. X The Fund will cover the 57 MCs, with a primary focus on developing trade links between them and increasing intra-OIC trade. There are also opportunities for MCs to export to non-MCs. X The Fund will be registered in a jurisdiction acceptable to all multilateral institutions and institutional investors and regulated by its corresponding financial authority, such as Dubai International Financial Centre Authority and the Financial Conduct Authority in the United Kingdom. X In addition to the standard governance structure (board of directors and investment committee), the Fund will have an Investor Advisory Committee acting as consultative committee representing the Fund investors and responsible for advising and approving any material change in the Fund investor Partnership Agreement. The Committee will comprise one representative from each investor holding more than 5% of the total fund size, and will meet quarterly. X The Fund will be managed by ITFC, with strategic input from an investment advisor and a technical advisor. ITFC will manage the Fund’s day-to-day operations and maintain relationships with the investors. It will be responsible for deal origination, structuring and ensuring attainment of returns for the Fund investors. X ITFC will delegate part of the ancillary management services to a regulated third-party asset manager (ancillary services provider). ITFC will work with the investment and technical advisors to develop a diversified pipeline of projects aligned with IsDB’s GVC MCPSs in target countries. To ensure that all investments are following the principles of Shariah, ITFC will rely on the IsDB Shariah Board. ACHIEVEMENTS X The Fund will adopt an investment strategy that aims to deliver the developmental objectives outlined in IsDB’s Agriculture and Rural Development Sector Policy/ Strategy. It will also be closely aligned with the findings and recommendations of the IsDB Global Agri-food Industry Report. X Thresholds have been set in the investment terms of the Fund in order to achieve development impacts related to food security (portfolio of 50% of staple crops and livestock commodities), local value addition (30% of processed or semi-processed commodities) and improvement of productivity and competitiveness (20% of inputs including agricultural machinery/tractors). INVESTMENT X The investment objective of the Fund is to maximise risk-adjusted returns by choosing Shariah- compliant trade finance investments that are expected to generate low volatility and competitive returns. X IsDB is planning to invest in the Fund for an amount of up to US$ 200 million via the usage of the Mudarabah line of financing (a form of business contract in which one party brings capital and the other personal effort), extended to ITFC. The investment will lead to sector and country diversification and hence enable a more efficient usage of the Mudarabah line. X ITFC will lead the Fund’s resource mobilisation efforts, as per the ‘Linkages’ pillar of the P5P. X IsDB funding (of US$ 200 million maximum) will be proportionate to achievements in terms of resource mobilisation (working towards the P5P’s Funding pillar): – First financial close at US$ 200 million: IsDB (33%), non-IsDB (66%) – Final financial close up to US$ 1,000 million: IsDB (20%), non-IsDB (80%). I S D B I N V E S T M E N T I N T H E F U N D IsDB plans to invest up to US$200 million in the Fund M E M B E R C O U N T R Y E X P O R T S Exports increased from US$33.5 billion in 1995 to US$110 billion in 2016 [ 79 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S