Islamic Finance 

Federated Investors, Inc. and International Islamic Trade Finance Corporation to Develop a Trade-Finance Portfolio Focused on Sovereign Energy Sector

| 09 August, 2018

(Pittsburgh, PA, and Jeddah, KSA, 7 August 2018) — Federated Investors, Inc. (NYSE: FII), one of the largest investment managers in the United States, and the International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, announced an agreement to launch a sovereign energy trade-finance portfolio.

The ITFC Sovereign Energy Fund (ISEF) will be sponsored and managed by ITFC with strategic input from Federated Investors (UK) LLP. The portfolio will be a private offering available to ITFC’s qualified investors across the Member Countries of the Organization of Islamic Cooperation (OIC) and ITFC’s global partners. It 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 OIC member countries. ISEF aims to raise U.S. $300 million for its first close.

Importantly, the portfolio will be Shari’ah compliant with investments realized through transaction structures that rigorously adhere to Islamic principles. The portfolio is expected to launch later in 2018.

“We are pleased with our cooperation with Federated Investors. The ITFC Sovereign Energy Fund (ISEF) marks our first joint initiative and we are looking forward to its success in the market as it paves the way to develop other business opportunities together,” said Eng. Hani Salem Sonbol, ITFC Chief Executive Officer.

Federated and ITFC have worked together on a broad array of Islamic trade-finance transactions since 2014. 

This joint initiative to create a new sovereign energy portfolio is tied to the belief that as the worldwide demand for energy continues to grow, a pool of trade-finance transactions can consistently deliver the alpha that investors seek.

“After working with ITFC over the past several years, we look forward to expanding our relationship by bringing Federated’s specialized trade-finance expertise, deep understanding of risk management and all the experience of Federated’s global fixed-income team to investors pursuing attractive opportunities built on the highest ethical standards,” said Gordon J. Ceresino, president and chief executive officer of Federated Investors (UK) LLP.

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the purpose of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commenced operations in January 2008 (Muharram 1429H), ITFC has since consolidated all trade finance businesses that used to be handled by various windows within the IsDB Group. Earning the A1 rating by Moody’s reflects the Corporation’s efficiency in service delivery by responding swiftly to customer needs in a market-driven business environment.

Since 2008, ITFC has provided more than US$40.2 billion of trade financing to OIC Member Countries, making the Corporation the leading provider of trade solutions for OIC Member Countries’ needs. With a mission of being a catalyst for trade development among OIC Member Countries and beyond, the Corporation helps entities in Member Countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

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