Federated Investors partners with Islamic Trade Finance

ITFC Sovereign Energy Fund would be designed in accordance with Islamic law. Though the company did not mention exact time of the launch, it is expected to happen sometime in 2018. UK-based Federated Investors would be providing strategic input to the ITFC Sovereign Energy Fund, while funding and managerial functions will be carried by Islamic Trade Finance Corporation. The portfolio will be available to ITFC’s qualified investors as a private offering.

ISEF will invest primarily in energy-related trade finance, structured trade, export/import finance, supply chain financing and project finance assets of sovereign entities across the energy value chain in Organization of Islamic Cooperation member countries. The portfolio aims to raise USD 300 million for its first close.

Islamic Trade Finance Corporation was established with a view to facilitate trade development among Organization of Islamic Cooperation member countries by gaining better access to trade finance and providing them with the necessary trade-related capacity building tools, in order to boost their power to compete in the global market. Since 2008, Islamic Trade Finance Corporation has provided more than USD 40.2 billion of trade financing to the member countries.