The Saudi-based International Islamic Trade Finance Corp (ITFC) said on Thursday it would launch a $300m fund alongside U.S. fund manager Federated Investors, aiming to tap trade finance opportunities in Muslim-majority countries.
The sharia-compliant fund is expected to launch later this year and would invest in energy-related structured trade, supply chain financing and project finance assets of sovereign entities, the ITFC said in a statement.
The fund will be managed by ITFC with input from Federated Investors, one of the largest investment firms in the U.S with $379.7bn in assets under management.
The two firms have worked together on Islamic trade finance transactions since 2014.
In recent years the ITFC, part of the Islamic Development Bank Group, has been expanding activities in countries outside the traditional core areas of Islamic finance in the Middle East and Southeast Asia.