Signing of a USD 25 Million Line of Financing Agreement between the Islamic Corporation for the Development of the Private Sector and JSCB “Uzbek Industrial and Construction Bank”


The ICD extended its third Line of Financing facility to JSCB with the aim of promoting Islamic finance, improving financial inclusion and supporting private sector development in Uzbekistan

Jeddah, Kingdom of Saudi Arabia: Mr. Ayman Amin Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), and Mr. Sakhi Annaklichev, the Chairman of the Management Board of Uzbek Industrial and Construction Bank (JSCB), signed a USD 25 Million Shari’ah-compliant Line of Financing Agreement which will be utilized by JSCB to local finance private sector businesses, especially Small and Medium Enterprises (SMEs).

The ICD, the private sector arm of the Islamic Development Bank Group (IsDBG), extended its third Line of Financing facility to JSCB with the aim of promoting Islamic finance, improving financial inclusion and supporting private sector development in Uzbekistan.

On this occasion, Mr. Sejiny commented that: “This Line of Financing facility will be utilized by Uzbek Industrial and Construction Bank to support economic activities and recovery during the Covid-19 pandemic and beyond”. He added: “SMEs have a crucial role to play in a country’s growth and development. ICD is now focusing on increasing access to Islamic finance by channeling funds to established financial institutions in its member countries”.

Mr. Sakhi Annaklichev, Chairman of the Management Board of JSCB praised the quality of the partnership between the two institutions. Mr. Sakhi stated: “In fact, the bank benefited from the first line (USD 12 million) from ICD in 2009 and the second line (USD 6 million) in 2002. The lines enabled the bank to support several SMEs by financing projects in various vital sectors such as production, agriculture, construction, and transport. Mr. Annaklichev added: “We thank ICD for extending this facility in challenging times caused by the COVID-19 Pandemic, when banks need to support their clients, especially SMEs”.

Since its inception and as a testament to ICD’s firm commitment to develop the private sector within its member countries, ICD has extended Line of Financing facilities to several financial institutions in Uzbekistan for the development of the private sector.

About ICD:
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral financial institution established by the Board of Governors of the Islamic Development Bank (IsDB) during its twenty-fourth (24) annual meeting held in Rajab 1420H (November 1999) in Jeddah, Kingdom of Saudi Arabia. ICD was established to be the IDBG private sector window. The authorized capital of the Corporation is USD 4 billion. The shareholders consist of the IsDB (rated Triple A), 55-member countries and 5 financial institutions from the member countries. ICD is rated ‘A2’ by Moody’s, ‘A-’ by S&P and ‘A+’ by Fitch.

The ICD aims to play a complementary role to the activities of IsDB and the national financing institutions in the member countries by focusing on private sector institutions in their various activities and operations in full compliance with the principles of Islamic Shari’ah. In addition to extending financing and financial services, ICD provides advisory and consultancy services to governments and private sector institutions in order to adopt policies for establishing, expanding and modernizing private sector companies, developing Equity Capital Markets (ECM), Debt Capital Markets (DCM) in the form of Sukuk, adopting better management practices, and strengthening the role of the market economy. ICD focuses its financing on development projects (such as infrastructure and private equity funds) that aim to create job opportunities and to encourage exports.

To achieve all these goals, 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. Financial services institutions within ICD’s member countries are benefiting from fintech innovations by using artificial intelligence, robotics, blockchain, data analytics, and cloud computing services. ICD created a platform based on its relationships with 119 financial institutions, through which, the Islamic Development Bank Group (IsDBG) in general and the institution, in particular, can have access to a concerned country and identify available financing opportunities. The platform allows financial entities to collaborate in identifying investment opportunities, sharing market information and laying the groundwork for actual financial transactions within the OIC member countries and across borders. 

About JSCB “Uzbek Industrial and Construction Bank”:
Uzbek Industrial and Construction Bank (Sanoat Qurilish Bank (SQB) or the Bank) is a majority state-owned universal commercial bank, which carries out all kinds of banking operations represented in financial services market including servicing of private and corporate clients. Its principal activities are commercial and retail banking operations, transactions with foreign currencies, the origination of loans, issuance of guarantees and letters of credit.

SQB, one of the country’s largest state-owned lenders, has managed to achieve impressive growth over the last 2 years. SQB is at the 1st place by loans to key industrial sectors of the country like, oil-gas, chemical industry; energy sectors and 2nd largest bank in terms of assets and loan portfolio size.

Currently, the bank’s transformation process is being implemented with the support of experts from the International Finance Corporation and the European Bank for Reconstruction and Development in the frame of which the bank’s 14 directions were improved such as corporate governance, treasury and risk management systems.

Also, SQB has been successfully performing in global area. In 2019-2020, the Bank expanded its international cooperation with such financial institutions as EBRD, ADB, OFID, JICA, ICBC Standard Bank PLC, VTB Europe SE, Aktif Bank, PromsvyazBank, Halyk Savings Bank of Kazakhstan, Moscow Credit Bank and Transkapitalbank.

The bank’s USD 300 million five-year Eurobond in November was also a big breakthrough for the country. The sovereign raised $500 million from its own debut deal earlier in the year, when no other Uzbek bank had ever sold an offshore bond.

In 2020, SQB was awarded by ADB as “The Best Partner in Trade Finance” and by Asiamoney was considered as “The best Domestic bank”.

SQB has the ratings BB- from Fitch and S&P rating agencies.