The Islamic Corporation for the Development of the Private Sector, a multilateral development financial institution and the private sector arm of the Islamic Development Bank (IsDB) Group, is pleased to announce the successful closure of $145 million Shariah compliant syndicated financing facility for Türkiye İhracat Kredi Bankası A.Ş. or Export Credit Bank of Türkiye A.S. (Turk Eximbank).
The facility has been structured as a Commodity Murabaha with a tenor of three years. This partnership between the two institutions aims to boost export-oriented businesses and export of private sector businesses in Türkiye and provide Shariah-compliant financing solutions to support exporters.
The syndicated financing facility was led by ICD as Mandated Lead Arranger and Bookrunner. ICD is also the Investment Agent of the facility. Three leading GCC-based Islamic banks participated in the facility. Warba Bank K.P.S.C. and Kuwait International Bank K.P.S.C. joined as Joint Lead Arrangers, whereas AlRayan Bank Q.P.S.C joined as Co-Lead Arranger.
The ICD remains committed to develop Shariah compliant financial channels in member countries to promote Islamic finance. This syndicated financing facility demonstrates the strong relationship of ICD, a multilateral development financial institution, with other leading Islamic Financial Institutions, to mobilize resources toward the sustainable development of the private sector across its member countries.
Dr. Khalid Khalafalla, acting CEO of ICD, stated, “I am glad to announce this medium-term financing facility, which is designed to promote economic development and support Shariah-compliant export-oriented businesses in Türkiye. Through this initiative, we aim to empower private sector projects, particularly corporates and SMEs, those have meaningful developmental impact on the Turkish economy”
Ali Güney, General Manager of Turk Eximbank, said, “Turk Eximbank is one of the main enablers of government’s export-led growth strategy and the largest development bank in Türkiye. We remain committed to support Turkish exporters and strengthening their global competitiveness. We consider ICD a strategic partner in this endeavor and look forward to continuing our cooperation in the future”
