ITFC, Hamkorbank Sign US$100 Million Islamic Finance Deal

Tashkent, Uzbekistan (UzDaily.uz) — 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.

The agreement is the largest standalone Islamic trade finance transaction in Uzbekistan. It provides Hamkorbank with access to Shariah-compliant funding amid growing demand for Islamic financing from the country's private sector.

Hamkorbank will primarily use the funds to support small and medium-sized enterprises, as well as projects related to women's entrepreneurship, green finance and food security.

The transaction comes as Uzbekistan's Islamic finance market continues to develop and financing instruments available to businesses expand. For Hamkorbank, the new facility will broaden its Islamic financial products and provide an additional channel to serve companies requiring import financing, working capital and supply chain financing.

ITFC Chief Executive Officer Adeeb Yousuf Al Aama said the agreement expands the reach of Islamic trade finance in Uzbekistan through a domestic banking partner with broad access to the private sector. He said ITFC aims to channel Shariah-compliant financing to companies that need to procure goods, access working capital and support their trading activities.

Hamkorbank Chairman of the Management Board Rafal Marcin Juszczyk said the new financing facility strengthens the bank's platform for providing Shariah-compliant financing to Uzbekistan's private sector and will enable it to serve a larger number of SMEs and companies operating in the areas of food security, green finance and women's entrepreneurship. He said the partnership with ITFC provides the bank with additional capacity to meet customer demand and contribute to the development of Islamic finance in Uzbekistan.

The International Islamic Trade Finance Corporation is a member of the Islamic Development Bank Group. It was established to promote trade among member countries of the Organisation of Islamic Cooperation (OIC) with the aim of improving socio-economic conditions. Since beginning 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.