Signing of a line of financing agreement of 25 million dollars between the Islamic Company for the development of the private sector and the JSCB “Uzbek Bank of Industry and Construction”

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Mr. Ayman Amin Sejiny, the CEO of the Islamic Society for the Development of the Private Sector (ICD) (www.ICD-idb.org), and Mr. Sakhi Annaklichev, Chairman of the Board of Directors of the Uzbek Industrial and Construction Bank (JSCB), signed a USD Shariah Compliant $ 25 Million Funding Line Agreement to be Used by JSCB local financing private sector companies, in particular small and medium-sized enterprises (SMEs).

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

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

Mr. Sakhi Annaklichev, Chairman of the Management Board of JSCB commended the quality of the partnership between the two institutions. Mr Sakhi said: “In fact, the bank has benefited from the first line (USD 12 million) from ICD in 2009 and the second line (USD 6 million) in 2002. The lines have 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 the extension of this installation in difficult times caused by the COVID-19 Pandemic, when banks need to support their customers, in particular SMEs”.

Since its inception and as a testament to the strong commitment of the ICD to develop the private sector in its member countries, ICD has extended line finance facilities to several financial institutions in Uzbekistan for private sector development.

Distributed by APO Group on behalf of the Islamic Society for the Development of the Private Sector (ICD).

About ICD:
The Islamic Society for the Development of the Private Sector (ICD) (www.ICD-idb.org) is a multilateral financial institution established by the Board of Governors of the Islamic Development Bank (IDB) at its twenty-fourth (24) annual meeting held at Rajab 1420H (November 1999) in Jeddah, Kingdom of Saudi Arabia. ICD was established to be the BIDBG private sector window. The authorized capital of the Company is USD 4 billion. The shareholders consist of the IDB (rated Triple A), 55 member countries and 5 financial institutions from 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 the IDB and national finance institutions in member countries by focusing on private sector institutions in their various activities and operations in full compliance with the principles of Islamic Sharia law. In addition to expanding financing and financial services, ICD provides advisory and advisory services to governments and private sector institutions to adopt policies for establishment, expansion and modernization of private sector enterprises, development of 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 funding on development projects (such as infrastructure and private equity funds) that aim to create jobs and encourage exports.

To achieve all these goals, ICD establishes and strengthens relations of cooperation and partnership with the aim of establishing common or collective funding. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive. Financial services institutions in ICD member countries benefit from fintech innovations using artificial intelligence, robotics, blockchain, data analytics and cloud computing services. ICD has 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 access a country concerned and identify opportunities for funding available. The platform enables financial entities to collaborate to identify investment opportunities, share market information and lay the foundation for real financial transactions within the OIC member countries and beyond. For more information, please visit: www.ICD-idb.org.

About JSCB “Uzbek Bank of Industry and Construction”:
Uzbek Bank of Industry and Construction (Sanoat Qurilish Bank (SQB) or the Bank) (www.SQB.uz) is a majority state-owned universal commercial bank, which performs all kinds of banking operations represented in the financial services market, including serving private and corporate clients . Its main activities are commercial and retail banking operations, foreign currency transactions, loan origination, issuance of guarantees and letters of credit.

SQB, one of the largest public lenders in the country, has managed to achieve impressive growth over the past 2 years. SQB is in 1st place by loans to key industrial sectors of the country such as oil and 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 which the 14 guidelines of the bank have been improved such as corporate governance, treasury and risk management systems.

Too, SQB performed well in the global zone. In 2019-2020, the Bank expanded its international cooperation with financial institutions such as EBRD, ADB, OFID, JICA, ICBC Standard Bank API, VTB Europe SE, Aktif Bank, PromsvyazBank, Halyk Savings Bank of Kazakhstan, Moscow Credit Bank and Transkapitalbank.

The banks USD 300 million five-year Eurobonds in November was also a big step forward for the country. The sovereign raised $ 500 million in its first deal earlier in the year, when no other Uzbek bank has ever sold an offshore bond.

In 2020, SQB was awarded by ADB as “The Best Trade Finance Partner” and by Asiamoney was rated as “The Best National Bank”.

SQB is rated BB- by the rating agencies Fitch and S&P.

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Signature of a USD 25 million financing line agreement between the Islamic Society for Private Sector Development and JSCB “Uzbek Industrial and Construction Bank”
Islamic Society for Private Sector Development (SID)

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