An agreement on syndicated financing worth $100 million was concluded between the International Trade Finance Corporation (ITFC), which is part of the Islamic Development Bank Group, and the Uzbek bank Hamkorbank. The signing of this contract took place on July 20 in Tashkent and Jeddah.
This deal is the largest independent transaction in the field of Islamic trade finance in Uzbekistan. It provides Hamkorbank with the opportunity to receive Sharia-compliant financing amid growing demand for Islamic finance from the country's private sector.
The main purpose of these funds is to support small and medium-sized enterprises, as well as projects related to women's entrepreneurship, green finance, and food security. This step comes against the backdrop of the continued development of the Islamic finance market in Uzbekistan and the expansion of financial tools available to businesses.
For Hamkorbank, the new agreement will allow it to expand its range of Islamic financial products and create an additional channel for serving companies that require import financing, working capital, and supply chain financing.
Adib Yusuf Al Aama, CEO of ITFC, noted that this agreement increases the reach of Islamic trade finance in Uzbekistan through partnership with a local bank that has wide access to the private sector. He emphasized that ITFC's goal is to direct Sharia-compliant financing to companies needing to purchase goods, obtain working capital, and support trade activities.
Rafal Marcin Yuszhik, Chairman of the Board of Hamkorbank, stated that the new credit mechanism strengthens the bank's platform for providing Sharia-compliant financing to Uzbekistan's private sector. This will enable the bank to serve more SMEs and companies operating in the fields of food security, green finance, and women's entrepreneurship. He also added that cooperation with ITFC gives the bank additional opportunities to meet client needs and promote the development of Islamic finance in Uzbekistan.
The International Trade Finance Corporation is a member of the Islamic Development Bank Group. It was established to promote trade between member countries of the Organisation of Islamic Cooperation (OIC) with the aim of improving socio-economic conditions. Since its inception in January 2008, ITFC has provided over $96 billion in financing to OIC member countries, becoming the largest provider of trade finance solutions for these countries.
The National Agency for Advanced Projects (NAPP) of Uzbekistan has granted access to the Regulatory Sandbox to two companies: Hamkorbank and HBCAPITAL LLC. This sandbox is a special legal mechanism designed to test innovations in the capital market.
Under the pilot regime, Hamkorbank intends to issue foreign currency-denominated bonds. The company HBCAPITAL will act as the investment intermediary responsible for the placement and issuance of these securities.
According to information from NAPP, the implementation of this project will be carried out through the Regulatory Sandbox mechanism. This mechanism allows financial institutions to test new financial products and services in a specially designated regulatory environment before their widespread adoption in the market.
