ICD, Trustbank to promote Islamic finance in Uzbekistan

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ICD and Trustbank have signed a $20 million line of finance agreement to promote Islamic finance and support private sector development in Uzbekistan.

The facility will be used to finance private sector businesses, with a focus on Small and Medium Enterprises (SMEs), in Uzbekistan. The Line of Finance aims to promote Islamic finance, improve financial inclusion, and support private sector development in Uzbekistan.

Eng. Hani Salem Sonbol, the Acting Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD), and Mr. Sardor Normukhamedov, Chairman of the Board of Private Joint Stock Bank “Trustbank” (the Bank), signed a USD 20 Million Line of Finance Agreement that will be used to finance private sector businesses, with a focus on Small and Medium Enterprises (SMEs), in Uzbekistan.

This Line of Finance facility marks the third extended by ICD to Trustbank and aims to promote Islamic finance, improve financial inclusion, and support private sector development in Uzbekistan.

Trustbank has already benefited from two previous lines of finance totaling USD 17 million, extended in 2018 and 2021, which have enabled the financial institution to support 11 new projects across various sectors of the economy.

“We are pleased to continue our partnership with Trustbank and support the growth of private sector businesses in Uzbekistan,” said Eng. Hani Salem Sonbol, the Acting Chief Executive Officer of ICD. “This line of finance will help to promote Islamic finance and financial inclusion, while also driving economic development in the country.”

Mr. Sardor Normukhamedov, Chairman of the Board of Trustbank, added: “We are grateful for the ongoing support of ICD and the opportunity to access finance that aligns with our values. These funds will allow us to continue providing vital support to private sector businesses in Uzbekistan, particularly SMEs, and contribute to the overall development of the country’s economy.”

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a member of the Islamic Development Bank (IsDB) Group. ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to governments and private companies of its member countries, and encouraging cross-border investments.

ICD is Rated A2′ by Moody’s, ‘A-‘ by S&P and, A+ by Fitch. ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive.—New Business Ethiopia