Cognisant of IsDB’s financial sustainability
imperatives and the capital investment needs
to implement the Sustainable Development
Goals, the Bank developed an innovative
institutional mechanism that enables a more
efficient use of its resources and a maximised
developmental impact. This mechanism is
centred around the establishment of Regional
Islamic Supranational Enterprises (RISE).
Instead of funding investments through
Ordinary Capital Resources (OCR), RISE
institutionalises an overarching integrated
partnership framework where OCR acts
as a resource mobilisation catalyst. This
partnership model leverages the strengths of
each developer to create significant synergies
and deliver a combined impact that is
considerably more important than the sum of
each stakeholder’s capacity.
A RISE is a regional developer specialised
in infrastructure project funding and
implementation with a geographical coverage
aligned with the regional hubs. Each RISE will
adapt to its respective context, complementing
rather than replacing existing national
institutions. Together, RISEs constitute a
closely knit network of specialised developers
covering all IsDB Member Countries (MCs).
How does it Work?
RISE funds its activities by issuing securities
on domestic and international capital
markets. These securities are de-risked
with a guarantee mechanism that attracts
development partners with a national,
regional and global mandate. The mechanism
pools national development banks, National
Infrastructure Guarantee Funds, and bilateral
and multi-lateral official development
assistance (ODA) resources, and allocates
tailored residual risks to each stakeholder.
Grounded in the MC’s development strategy
and IsDB’s Global Value Chain approach,
the priority infrastructure investments are
developed and brought to a bankability stage
by RISE, IsDB and the MC
RISE implements the originated projects by
partnering with a private sector developer
(PSD) in accordance with multilateral
development bank procurement practices.
RISE seeds the projects’ vehicles and
the PSD mobilises the remaining funding
Post-construction projects are pooled with
geographical and sectoral diversification and
distributed to the capital markets. This frees
up RISE’s balance sheet and cuts the capital
cycle by a factor of four.
RISE’s governance structure balances sovereign
and private sector interests. Direct involvement
in project implementation is a contractual
device that mitigates some of the most salient
structural issues in public and public-private
partnership procurement as it allows better
alignment of incentives between all parties.