ICIEC and ICD Pioneer First Joint Syndicated Financing Transaction to Strengthen Islamic Finance and Expand Private Sector Investment in Uzbekistan
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 inaugural joint syndicated financing transaction in Uzbekistan. This collaboration marks a significant step in enhancing cooperation within the Islamic Development Bank (IsDB) Group, of which both institutions are members.
Strengthening Intra-Group Collaboration
This landmark transaction exemplifies the strategic synergy between ICIEC and ICD. By merging ICD’s expertise in syndication and private sector financing with ICIEC’s credit risk mitigation solutions, the two organizations are broadening the scope of Shariah-compliant financing. This initiative aims to mobilize private capital, expand trade, and bolster sustainable private sector investments across member countries.
Under this innovative syndication framework, ICD led a USD 60 million Shariah-compliant Syndicated Financing Facility for Joint Stock Company “Asakabank” in Uzbekistan. The facility includes an accordion feature, allowing for an increase in size as needed. ICIEC contributed USD 30 million in Credit Risk Insurance coverage for a Kuwaiti bank, safeguarding against potential defaults by the obligor within the context of this financing arrangement.
Participation of Boubyan Bank
Boubyan Bank participated as the sole Kuwaiti financial institution in this syndication, underscoring its commitment to pioneering Shariah-compliant financing structures and fostering regional private sector development. This involvement reflects a growing interest among Islamic financial institutions in structured syndication opportunities that are backed by robust risk mitigation strategies.
Implications for Islamic Finance
The collaboration between ICIEC and ICD demonstrates how integrated solutions from the IsDB Group can enhance participation from both regional and international financial institutions. This transaction not only increases financing capacity but also reinforces confidence in Islamic syndicated financing as a viable instrument for promoting private sector growth. It aligns with broader objectives of enabling businesses to access the necessary financing for expansion, job creation, and strengthening value chains, thereby contributing to economic resilience.
Dr. Khalid Khalafalla, CEO of ICIEC and Acting CEO of ICD, emphasized the importance of this milestone. He stated that the joint syndication transaction reflects the strength of collaboration within the IsDB Group and a shared commitment to delivering integrated, Shariah-compliant solutions that address the financing needs of member countries. He noted that this partnership helps unlock financing, bolsters confidence among financial institutions, and channels capital toward businesses and projects that foster job creation, economic diversification, and sustainable growth.
Commitment to Expanding Access to Finance
This transaction exemplifies the shared commitment of ICIEC and ICD to broaden access to finance, enhance Islamic finance solutions, and support transactions that contribute to economic growth and development impact. As part of the IsDB Group, both institutions plan 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 across member countries.
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About ICIEC:
ICIEC, a member of the rated IsDB Group, began operations in 1994 to enhance economic relations among OIC Member States and promote intra-OIC trade and investments through risk mitigation tools and Shariah-compliant financial solutions. It is the only Islamic multilateral insurer globally and has provided a comprehensive suite of solutions across its 51 Member States. ICIEC has maintained an “Aa3” insurance financial strength credit rating from Moody’s for 18 consecutive years and has been reaffirmed with an “AA-” long-term Issuer Credit and Financial Strength Rating by S&P.
About ICD:
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development finance institution and a member of the IsDB Group. Established in November 1999 and headquartered in Jeddah, Saudi Arabia, ICD supports economic development in its 56 member countries by providing financial assistance to private sector projects in accordance with Shariah principles. ICD holds strong credit ratings of A2 by Moody’s, A+ by Fitch, and A by S&P.
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Published on 2026-06-30 20:12:00 • By the Editorial Desk
