Archived Webinar

The Use of Islamic Debt in Social Sector Projects

This is a joint initiative of the World Bank Group and the Islamic Development Bank.

In many Organization of Islamic Cooperation (OIC) member countries, an increasing number of PPP infrastructure projects are being jointly financed by conventional and Islamic banks. While these projects bring together conventional and Islamic tranches, one frequently asked question is: how are these two financing classes integrated in a single project?

In this webinar, we will discuss the case of a hospital PPP project where both conventional and Islamic banks are present as lenders. The case will present the transaction structure and the documentation involved in the structure that put together these two types of lenders in one transaction, focusing on the Istisna’a modes of financing.

Istisna’a financing requires the Islamic banks to provide fixed rate of pricing, while the conventional lenders mainly provide long-term variable rate financing. This webinar will discuss the methodology applied to bring in the pricing parity between conventional and Islamic lenders in PPP projects.

While presenting the transaction structure, this webinar will also discuss the case of security sharing, treatment of some conventional fees by the Islamic banks, lenders’ decision-making processes, and specifics of Islamic finance.

Presenter Resources

About the Presenters

Fida Rana

Mr. Fida Rana is a senior PPP expert at the Islamic Development Bank. Fida has long professional experience in project & infrastructure finance, credit risk, Islamic finance, and public private partnerships. He has been a pioneer in structuring and financing infrastructure PPP projects in many countries, especially in emerging and developing economies.

A veteran project finance professional, Fida has been instrumental in arranging, underwriting, and syndicating structured loans in a wide variety of industries (including power, oil and gas, mining, and social infrastructure). Currently, he is leading the PPP origination and execution initiatives of the Islamic Development Bank, which has operations in 56 countries in Asia, Eastern Europe, Africa, and Middle East.

Fida is a regular speaker at international conferences and workshops on public private partnerships and project finance. An alumni of Henley Business School of the University of Reading in the UK, Fida holds a bachelor degree in Economics and Masters degrees in Business Administration and Investment Banking.

Hassan Idris

Hassan is a lawyer and works as In-House Counsel with the Islamic Development Bank. In this capacity, he also acts as a transaction counsel for infrastructure and trade finance teams. His corporate expertise revolves around legal advisory on energy, banking, capital markets, Islamic finance, and corporate affairs.

Hassan has extensive experience in commercial litigation and has advised on real estate, infrastructure, securities, finance law and Alternative Dispute Resolution (ADR). He has obtained certifications in debt and financial management, Islamic finance, international environmental law, capital markets development, regulations, and risk management.

Prior to joining the Islamic Development Bank, Hassan was the Legal Advisor to the Monument Group in Nigeria. He also established the Legal Department of Jaiz Bank, the first Islamic Bank in Nigeria. Before this, he provided legal and risk management services to Guaranty Trust Bank in Nigeria.

Hassan is an Associate Fellow at the Institute of Islamic Banking and Insurance in the UK, and he holds a professional certificate in Chartered Islamic Finance from the Global University of Islamic Finance, in Malaysia. He holds a Bachelor of Law in Common and Shariah Laws and Masters in Business and Commercial Law from Usmanu Danfodiyo University and Bayero University respectively.

Inutu Lukonga

Inutu Lukonga is a senior economist in the Middle East and Central Asia department (MCD) of the International Monetary Fund. She has extensive training and operational experience as both a macroeconomist and supervisor of banks and securities firms, and currently works as the financial sector expert in the Regional Surveillance Division of MCD. She joined the Fund in 1993 after a distinguished career with the Central Bank of Zambia where she held the position of Deputy Director of Research. Since joining the Fund, she has undertaken assignments in more than 22 countries, including countries throughout Europe, the Asia-Pacific region, Africa, the Caribbean, Middle East, and Central Asia. She has undertaken extensive work in Islamic finance issues as part of the Interdepartmental Working Group on Islamic Finance, which developed the Fund’s position on Islamic Finance. She is also the author of the study Islamic Finance, Consumer Protection, and Financial Stability.

Sara Ahmed (Moderator)

Sara Ahmed is a PPP Knowledge Consultant and Water Analyst at the World Bank Group’s Public Private Infrastructure Advisory Facility (PPIAF). She supports the implementation and monitoring of PPIAF’s strategic global knowledge initiatives and PPIAF’s water sector programs. Sara focuses on developing knowledge products around PPPs that contribute to PPIAF’s technical assistance activities.

Previously, Sara worked as a Project Manager at AECOM International Development, where she managed USAID-funded programs based in Southeast Asia and the Middle East. As a graduate student, she worked at the U.S. Department of State’s Office of Development Finance and at the World Bank Group’s Integrity Vice Presidency. She holds a Master of Arts in International Economics & Emerging Markets from the Johns Hopkins School of Advanced International Studies, and a Bachelor of Arts in International Relations and Economics from George Washington University.

Target Audience

World Bank Group staff; consultants; policymakers in client countries.

Questions Submitted

jose luis

- Jul 25, 2022
MUY BUENO

Mahaman Mourtala

- Oct 28, 2021
useful!

MOHAMMAD

- Jan 29, 2021
Great!

Anvar

- Mar 28, 2020
Interesting!

Joy Mildred Adhiambo

- Dec 16, 2019
The Use of Islamic Debt in Social Sector Projects

Waqar Aamir

- Jun 8, 2019
Good

Jafar

- Mar 26, 2019
sangat Menarik

Yousuf

- Sep 13, 2018
Is standard procurement documents (Standard Concession agreement) available for reference

Ki

- Jun 26, 2018
Interesting!

Abdurazak

- Jun 15, 2018
thanks
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