ICIEC and ICD Pioneer $60 Million Joint Syndicated Financing to Strengthen Islamic Finance and Boost Private Sector Investment in Uzbekistan
In a notable development for Islamic finance, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Islamic Corporation for the Development of the Private Sector (ICD) have successfully completed their first joint syndicated financing transaction in Uzbekistan. This collaboration aims to enhance cooperation within the IsDB Group and broaden Shariah-compliant financing options for member countries.
Strengthening Strategic Synergy within the IsDB Group
The partnership between ICIEC, a multilateral insurer compliant with Shariah principles, and ICD, the private sector arm of the Islamic Development Bank (IsDB) Group, represents a significant step in aligning their capabilities. By combining ICD’s expertise in syndication and private sector financing with ICIEC’s credit risk mitigation solutions, the institutions seek to expand the availability of Shariah-compliant financing, mobilize private capital, and support sustainable investment initiatives.
Under this new syndication framework, ICD has successfully led a USD 60 million Shariah-compliant Syndicated Financing Facility for Joint Stock Company “Asakabank” in Uzbekistan. This facility features an accordion option, allowing for an increase in size, while ICIEC has provided USD 30 million in Credit Risk Insurance coverage to a Kuwaiti bank, protecting against the risk of default by the obligor.
Participation of Boubyan Bank and Regional Implications
Boubyan Bank has emerged as the sole Kuwaiti financial institution involved in this syndication, highlighting its commitment to innovative Shariah-compliant financing structures and the development of the regional private sector. This participation underscores the growing interest among Islamic financial institutions in structured syndication opportunities supported by robust risk mitigation solutions.
The collaboration between ICIEC and ICD not only enhances financing capacity but also builds confidence in Islamic syndicated financing as a viable tool for promoting private sector growth. This initiative aligns with the broader objective of facilitating access to financing for businesses, enabling them to expand, create jobs, and strengthen value chains, which are crucial for economic resilience.
Expert Insights on the Collaboration
Dr. Khalid Khalafalla, CEO of ICIEC and Acting CEO of ICD, emphasized the significance of this milestone. He remarked that this inaugural joint syndication transaction reflects the strength of collaboration within the IsDB Group and their mutual commitment to providing integrated, Shariah-compliant solutions that meet the financing needs of member countries. By merging ICD’s mandate for private sector development with ICIEC’s expertise in credit risk insurance, the institutions aim to unlock financing, enhance confidence among financial institutions, and direct capital toward projects that foster job creation and economic diversification.
This transaction sets a precedent for future cooperation between ICIEC and ICD, reinforcing their collective role in delivering tangible development impacts across member countries.
Commitment to Expanding Access to Finance
The transaction signifies a shared commitment by ICIEC and ICD to broaden access to finance, enhance Islamic finance solutions, and support transactions that contribute to economic growth and resilience. As part of the IsDB Group, both institutions are positioned to deepen their collaboration in developing innovative Islamic financing structures, expanding syndication platforms, and mobilizing regional and international capital to support private sector development, trade, infrastructure, and sustainable economic growth.
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About ICIEC and ICD
ICIEC, a member of the rated Islamic Development Bank (IsDB) Group, has been operational since 1994, focusing on strengthening economic relations among OIC Member States and promoting intra-OIC trade and investments through risk mitigation tools and Shariah-compliant financial solutions. It is the only Islamic multilateral insurer globally, having insured over USD 139 billion in trade and investment across various sectors, including energy, manufacturing, and agriculture.
ICD, established in November 1999 and headquartered in Jeddah, Saudi Arabia, supports economic development in its 56 member countries by providing financial assistance to private sector projects in accordance with Shariah principles. With an authorized capital of USD 4.0 billion, ICD complements IsDB’s activities by promoting capital market development and enhancing the role of market economies.
For more information about ICIEC, visit ICIEC and for ICD, visit ICD.
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Published on 2026-07-01 00:13:00 • By the Editorial Desk
