The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group, and Uzbekistan’s Hamkorbank have signed a US$100 million syndicated financing facility. The agreement was signed on 20 July in Tashkent and Jeddah.
It is the largest standalone Islamic trade finance transaction in Uzbekistan, giving Hamkorbank access to Shariah-compliant funding as private-sector demand for Islamic financing grows.
Hamkorbank will primarily use the funds to support SMEs and projects tied to women’s entrepreneurship, green finance and food security. The facility broadens its Islamic product range and adds a channel to serve companies needing import financing, working capital and supply chain financing.
ITFC CEO Adeeb Yousuf Al Aama said the agreement expands the reach of Islamic trade finance in Uzbekistan through a domestic partner with broad private-sector access, channeling Shariah-compliant financing to companies that need to procure goods, access working capital and support trading activities.
Hamkorbank Chairman of the Management Board Rafal Marcin Juszczyk said the facility strengthens the bank’s platform for Shariah-compliant financing and will let it serve more SMEs and companies in food security, green finance and women’s entrepreneurship. He said the ITFC partnership adds capacity to meet customer demand and support the development of Islamic finance in Uzbekistan.
Since starting operations in January 2008, ITFC has provided more than US$96 billion in financing to OIC member countries, making it the largest provider of trade finance solutions for those countries.