ICD Secures $145 Million Shariah-Compliant Financing for Turk Eximbank.

Thursday 7th August 2025

Par inAfrika Reporter

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, has announced the successful closure of a USD 145 million Shariah-compliant syndicated financing facility for Türkiye İhracat Kredi Bankası A.Ş., known as the Export Credit Bank of Türkiye (Turk Eximbank). Structured as a Commodity Murabaha with a three-year tenor, the facility is designed to boost export-oriented businesses in Türkiye by providing tailored Shariah-compliant financing solutions to exporters in the private sector.

Acting as Mandated Lead Arranger and Bookrunner, ICD also serves as the Investment Agent for the facility. The syndicated financing drew participation from three leading Gulf Cooperation Council-based Islamic banks. Warba Bank K.P.S.C. and Kuwait International Bank K.P.S.C. joined as Joint Lead Arrangers, while AlRayan Bank Q.P.S.C. participated as Co-Lead Arranger.

ICD has reaffirmed its commitment to developing Shariah-compliant financial channels across its member countries to promote Islamic finance as a driver for sustainable private sector growth. This facility underlines the strong working relationship between ICD and other Islamic financial institutions, demonstrating their collective capacity to mobilize resources toward development objectives.

Dr. Khalid Khalafalla, Acting CEO of ICD, emphasized the developmental ambitions underpinning the financing. He stated that the medium-term facility is aimed at promoting economic development and supporting export-oriented businesses that operate in accordance with Shariah principles. He highlighted the importance of empowering private sector projects, particularly those run by corporates and SMEs that deliver measurable developmental impact on Türkiye’s economy.

Turk Eximbank’s General Manager, Mr. Ali Güney, stressed the bank’s strategic role as a facilitator of the government’s export-led growth policy. As the largest development bank in Türkiye, Turk Eximbank remains dedicated to supporting Turkish exporters and enhancing their competitiveness in global markets. Mr. Güney described ICD as a key partner in these efforts and expressed optimism about future collaborations to strengthen the export sector further.

The financing initiative aligns with ICD’s broader mission to enable Islamic financial solutions that can spur private sector-led growth and foster sustainable economic resilience. By bringing together prominent financial institutions under a Shariah-compliant framework, the facility is positioned to serve as a model for similar partnerships in other member countries.

Through this transaction, ICD and its partners aim not only to inject much-needed liquidity into Türkiye’s export sector but also to demonstrate the viability of Shariah-compliant instruments in supporting international trade finance. This approach reflects a growing recognition of the role that Islamic finance can play in bridging funding gaps and facilitating cross-border economic activity among member states.

As Türkiye continues to navigate global economic challenges and opportunities, initiatives such as this are expected to contribute to the stability and competitiveness of its export sector. The partnership between ICD and Turk Eximbank signals a shared vision of leveraging financial innovation to advance national development goals while adhering to ethical and religious financial principles.

The successful closure of the facility also underscores the increasing sophistication of Islamic syndicated financing structures, which are evolving to meet the needs of diverse markets while ensuring compliance with Shariah law. This adaptability is seen as crucial in expanding the reach and impact of Islamic finance globally, particularly in regions with growing demand for alternative financing models.

With this deal, ICD reaffirms its role as a catalyst for private sector growth, fostering partnerships that can deliver tangible economic benefits. For Turk Eximbank, the financing represents both a vote of confidence from international partners and a practical tool for advancing Türkiye’s export-led growth agenda. The combined efforts of the institutions involved are expected to create a ripple effect across related industries, ultimately benefiting the broader economy.