The private sector arm of the Saudi-based Islamic Development Bank group received approval on Thursday to double its capital, as it aims to keep pace with a growing project pipeline ranging from Africa to China.

The move will allow the AA-rated Islamic Corporation for the Development of the Private Sector (ICD) to access the capital markets and ramp up its economic development efforts across its 52 member countries.

A general assembly of the ICD approved doubling its authorised capital to $4 billion, while doubling its capital open for subscription to $2 billion.

Established in 1999, the ICD has a financing portfolio of approximately $900 million and it aims to expand this to as much as $4 billion in the next four years, ICD chief executive Khaled Al-Aboodi said at the meeting held in Mozambique.

Africa is a key area of focus for ICD: Currently 13 percent of its portfolio is in Africa, with plans to increase this to 30 per cent in five years time, Al-Aboodi said.

On Thursday, the ICD signed separate agreements with Mozambique's Banco Nacional de Investimento and Banque Commerciale du Chari, the latter to establish the first dedicated Islamic window in Chad.

Last year, the ICD arranged Senegal's maiden issuance of sukuk (Islamic bonds), and it plans to help the sovereign return to the market alongside debut deals from Jordan and Ivory Coast.

The ICD plans to establish a sukuk programme of its own, helping it raise as much as $1.2 billion in long-term funds during its current financial year, which started in October.

The ICD is also active in less traditional markets for Islamic finance, working alongside China's ICBC Leasing and the China International Contractors Association. - Reuters