The Islamic Corporation for the Development of the Private Sector (ICD) has successfully structured and closed a USD 60 million Shariah-compliant financing for Asakabank, one of Uzbekistan’s leading commercial banks. The landmark transaction, designed with an accordion feature to allow for future expansion, marks a significant step forward in providing flexible, long-term Islamic financing to private enterprises across Central Asia.
Acting as the Mandated Lead Arranger and Bookrunner, the ICD collaborated with Kuwait’s Boubyan Bank K.S.C.P., which participated as the Joint-Lead Arranger. The facility received further backing from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which provided crucial credit enhancement. This strategic partnership highlights a growing appetite among international Islamic financial institutions for structured syndication opportunities in rapidly transforming emerging markets.
Expanding Shariah-Compliant Financing for Asakabank and the Private Sector
For corporate leaders and business professionals monitoring global capital flows, the timing of this syndication is critical. In early 2026, Uzbekistan officially enacted landmark legislation establishing a comprehensive legal framework for Islamic banking, allowing traditional financial institutions to operate dedicated “Islamic windows.” This $60 million capital injection aligns perfectly with the nation’s broader macroeconomic strategy to diversify funding streams, integrate informal savings into the formal economy, and attract ethical foreign direct investment from the Middle East.
The newly secured funds are strictly earmarked to empower Uzbekistan’s private sector, with a strong focus on corporate infrastructure projects and Small and Medium-sized Enterprises (SMEs). According to Dr. Khalid Khalafalla, Acting CEO of the ICD, the transaction exemplifies the multilateral institution’s capacity to mobilize private capital. “For every dollar deployed by ICD, we have successfully mobilized an equivalent dollar from partner institutions,” he noted, emphasizing the facility’s potential to deliver a meaningful developmental impact across the Uzbek economy.
Asakabank, which is currently undergoing a strategic transformation ahead of a planned privatization that includes potential equity acquisition by the European Bank for Reconstruction and Development (EBRD), views this Islamic financing line as a core component of its future growth. Surat Utkurovich Zakirov, Acting Chairman of Asakabank’s Board, affirmed that as the new Islamic banking legislation takes root in the country, the bank considers the ICD a vital strategic partner in delivering ethical, Shariah-compliant credit solutions to its corporate customer base.
By bringing together Middle Eastern capital, multilateral credit insurance, and local banking infrastructure, the ICD has created a scalable blueprint for how targeted financial syndications can accelerate sustainable economic development and corporate growth in transitional markets.
