AVAZA, Turkmenistan — The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), signed a $10 million Line of Financing Agreement with the State Bank for Foreign Economic Affairs of Turkmenistan (SBFEAT) on August 25, 2019.

Rahimberdi J. Jepbarov, Chairman of SBFEAT) and Samir Taghiyev, Senior Relationship Manager for CIS Region at ICD, on behalf of the CEO Ayman Sejiny, signed the Line of Financing Agreement for a $10 million facility during the First Caspian Economic Forum held in Avaza, Turkmenistan.

The $10 million Shariah-compliant Line of Financing facility based on Wakala structure will be utilized by SBFEAT to provide financial support to the private sector in Turkmenistan, including Small and Medium Enterprises (SMEs) through Islamic modes of financing.

This financing is the first Shariah-compliant facility for SBFEAT, which will enable the SBFEAT to offer Shari’ah-compliant products along with other banking services.

SBFEAT is the state commercial bank, which acts as an official agent of the Government of Turkmenistan in international capital markets by carrying out activities to attract mid-term and long-term loans to finance development projects in the country. Established in 1992, the Bank has become the largest bank in the country and currently holds strong positions on the money market of Turkmenistan and accumulated substantial experience cooperating and partnering with various foreign financial institutions: commercial and investment banks, export credit agencies and development banks. SBFEAT also provides financial services to corporate clients and population in general. SBFEAT acts as the IsDB Governor’s Office for Turkmenistan. — SG