ITFC extends $30m financing to Uzbekistan’s Hamkorbank

A fresh US$30 million injection from the International Islamic Trade Finance Corporation is set to accelerate Uzbekistan’s shift towards ethical, sustainable finance — strengthening Hamkorbank’s role at the forefront of the country’s growing Islamic finance sector

The International Islamic Trade Finance Corporation (ITFC) has expanded its partnership with Uzbekistan’s Hamkorbank through an additional US$30 million syndicated line of financing, bringing the total facility between the two institutions to US$90 million — the largest stand-alone ITFC private-sector facility in the country.

The agreement, signed at ITFC headquarters in Jeddah during a visit by a high-level Hamkorbank delegation, forms part of a wider US$600 million framework arrangement between the Republic of Uzbekistan and ITFC concluded in March 2024.

ITFC chief executive Eng Adeeb Y. Al Aama said: “This expanded partnership with Hamkorbank reflects ITFC’s strong commitment to deepening private sector support and advancing Islamic finance in Uzbekistan. By extending this new facility, we are enabling greater access to trade finance for SMEs and contributing to the country’s efforts to build a more inclusive and sustainable economy.”

Hamkorbank chairman Bakhtiyorjon Juraev added: “We are delighted to have reached this significant agreement with ITFC, with a total exposure of US$90 million. This collaboration will play a crucial role in supporting and expanding Hamkorbank’s Islamic Financing portfolio, which aligns with our commitment to providing ethical and innovative financial solutions.

“We believe that this partnership will not only enhance our service offerings but also contribute to the growth of key sectors within the region. We look forward to a long and successful relationship with ITFC as we continue to support sustainable economic development.”

The additional funding will support small and medium-sized enterprises, women’s entrepreneurship, green finance and food-security initiatives in line with Uzbekistan’s national development priorities.

Uzbekistan joined ITFC in 2019. Since then, the organisation — part of the Islamic Development Bank Group — has approved a cumulative US$950 million in financing for Uzbek banks.

READ MORE: ‘Digitalization, financial inclusion, and a new era of banking services: Uzbekistan’s road to WTO membership’. As Uzbekistan advances toward WTO membership, digitalisation is reshaping its banking system and widening access to finance. Max Johnson, a member of ANORBANK’s Supervisory Board, explores how reform, innovation and a young, connected population are propelling the country into a new era of financial inclusion.

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_{Main image: Mr. Bakhtiyorjon Juraev, Chairman of the Management Board of Hamkorbank and Eng. Adeeb Y. Al Aama, CEO of ITFC. Credit: International Islamic Trade Finance Corporation (ITFC)}