The Saudi Arabia-based Islamic Development Bank (ISD) has launched its second infrastructure fund, aiming to support up to $24bn in aggregate financing to infrastructure projects in its member states.

The fund will be one of the largest private equity funds funding projects in the Islamic World.

The $2bn fund will be triple the size of the bank’s first $730m infrastructure fund, which is expected to reach final close in early 2015.

Bahrain-headquartered Asma Capital Partners will manage the fund. It is supported by Saudi Arabia’s Public Pension Agency and its Public Investment Fund, as well as Bahrain and the Brunei’s ministries of finance.

ISD’s first fund had an internal rate of return of 18 per cent, and invested in a range of companies and projects, including AirAsia in Malaysia and Saudi International Petrochemical Company.

The second fund will also look at investment opportunities in power, energy, transportation, telecommunications, mining and industrial sectors.

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