The International Islamic Trade Finance Corporation (ITFC) and Uzbekistan’s Hamkorbank signed a $100 million syndicated credit line agreement. The funds will support small and medium-sized businesses in compliance with Sharia law.
What happened
The deal was closed on July 20 in Tashkent and Jeddah. ITFC, a member of the Islamic Development Bank Group, will provide the Uzbek bank with access to Sharia-compliant funds to finance trade operations.
As reported, this is the largest standalone deal in Uzbekistan’s Islamic trade finance segment.
Hamkorbank will direct the raised funds to support small and medium-sized businesses. Priority areas include projects related to women’s entrepreneurship, green finance, and food security. The line will allow companies to raise money for imports, working capital replenishment, and supply chain building.
Country and market
Uzbekistan is actively developing Islamic finance as an alternative capital source. Private sector demand for such instruments is steadily growing, and local financial institutions are looking for ways to expand their offerings.
Finteqstan previously reported that Uzbekistan's NAPP allowed Hamkorbank to test foreign currency bonds in the regulatory sandbox. Now the bank is scaling its Islamic financial products by attracting funding from abroad.
Why it matters
The syndicated credit line gives Uzbek exporters and importers access to international capital. For local businesses, this means diversifying trade finance sources, especially in sectors where traditional bank loans might be unavailable or unacceptable for religious reasons.
What’s next
For Hamkorbank, the new line becomes an additional channel for serving corporate clients. Uzbek banks are gradually moving from local Sharia pilots to large-scale international funding for the real sector.