Joint-Stock Innovation Commercial Bank “Ipak Yuli” and the Islamic Corporation for the Development of the Private Sector (ICD) have signed a new financing line agreement to meet the financial needs of private sector clients in Uzbekistan, with a special focus on small and medium-sized businesses. The agreement was signed during the Annual Meeting of the Islamic Development Bank Group in Jeddah, Saudi Arabia on May 12, 2023.

Under the agreement, ICD will provide a US $15 million funding line and EUR €5 million on the basis of an agency agreement - wakala to finance relevant private sector projects recommended by “Ipak Yuli” Bank, using the murabaha instrument. It is expected that this financing will contribute to the growth of the private sector in Uzbekistan and allow entrepreneurs to create value-added projects that can contribute to the expansion of the national economy.

The new financing agreement is the evidence of strong partnership between ICD and “Ipak Yuli” Bank, which began in 2006. Since then, the Bank has attracted four lines of financing provided by the ICD, where the latest agreement is in line with the strategy for the development of ICD channels and reaffirms its commitment to supporting the development of private sector projects in member countries. The murabaha instrument used in this agreement is a popular Islamic finance instrument that allows to buy goods or assets at cost at a markup, making it an attractive option for businesses seeking Shariah-compliant financing.