Agrobank, a joint-stock commercial bank and one of the largest in Uzbekistan, has secured a €160.4 million ( US$167.38 million ) loan to provide Shariah-compliant financing for retail customers and support the growth of small and medium-sized enterprises ( SMEs ) in the Central Asian country.

The financing is supported by The Islamic Corporate for the Insurance of Investment and Export Credit ( ICIEC ), which is part of the Islamic Development Bank.

Standard Chartered acted as ICIEC coordinator, structuring bank, investment agent, mandated lead arranger, and bookrunner in this transaction. The other lender and mandated lead arranger is Sumitomo Mitsui Banking Corporation ( SMBC ).

Agrobank will use the facility to lend to retail customers and SMEs through its electronic marketplace platforms, while its subsidiary Smart Bank will be the operational agent for Islamic products. The facility supports economic development and job creation in Uzbekistan while fostering financial inclusion. 

This transaction marks Standard Chartered’s third deal with Agrobank, and builds on a strong portfolio of seven projects already supported by the bank in Uzbekistan. It is also the first murabaha structure in Uzbekistan for Standard Chartered and ICIEC.

“We are proud to play our part, through Islamic finance, in driving financial inclusivity, economic growth and prosperity for such an important and vital sector of Uzbekistan,” says Desislava Radeva, executive director, development and agency finance, at Standard Chartered.

“Aligning our strengths with those of our trusted partners at ICIEC, the positive impact derived from this transaction paves the way for future collaboration in Uzbekistan that will thrive from a similar financing structure.”