Ipak Yuli Bank raised $75 million from ITFC to develop Islamic financing in Uzbekistan.
The International Islamic Trade Finance Corporation (ITFC) opened a syndicated credit line for Uzbekistan’s Ipak Yuli Bank. The funds will support small and medium-sized businesses according to Sharia standards.
The International Islamic Trade Finance Corporation, part of the Islamic Development Bank (IsDB) group, provided the capital to meet the growing demand for Islamic financial products in Uzbekistan’s private sector. The corporation announced this directly.
ITFC CEO Adib Yusuf Al-Aama noted that private businesses need resources to purchase goods and execute trade operations. The credit line allows companies to access trade finance through a familiar local financial institution.
Farrukh Iskhakov, Deputy Chairman of the Management Board at Ipak Yuli Bank, specified that the agreement gives the bank flexibility in lending to businesses across the country. The funds will be distributed among several priority areas: general SME support, women’s entrepreneurship development, and financing for environmental initiatives and food security projects.
Uzbekistan and the Central Asian Market
Islamic financing in Uzbekistan is gradually moving beyond niche products. Ipak Yuli Bank acts as a conduit for international capital into the real economy. For ITFC, which has financed Organization of Islamic Cooperation countries with over $96 billion since 2008, working through local banks remains the primary way to support importers and trade chains in emerging markets.
Why It Matters
A syndicated line means the financing is provided by a pool of lenders, with ITFC acting as the arranger. This instrument allows for raising significant capital volumes and distributing risks.
Syndicated deals of this size show the readiness of international Islamic institutions to move from isolated projects to systemic funding of Uzbek banks.
What’s Next
Ipak Yuli Bank will likely begin rolling out targeted products for importers and local suppliers more actively. The speed at which these $75 million are absorbed will show the true capacity of the Uzbek market in the Sharia-compliant trade finance segment.