The Export Credit Bank of Türkiye (Türk Eximbank) has secured a shariah-compliant syndicated facility worth US$145mn from a group of Middle Eastern lenders and the Islamic Development Bank Group, bolstering its capacity for Turkish exporters.
The financing was led by multilateral development institution the Islamic Corporation for the Development of the Private Sector (ICD), which acted as mandated lead arranger (MLA), bookrunner and investment agent.
Warba Bank and Kuwait International Bank are joint lead arrangers, while AlRayan Bank is co-lead arranger.
Structured as a commodity murabaha and with a three-year tenor, the deal follows Islamic financing principles.
“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,” says ICD, which is the private sector arm of the wider Islamic Development Bank Group.
ICD’s acting chief executive, Khalid Khalafalla, says: “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,” adds Khalafalla, who is also CEO of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Ali Güney, Turk Eximbank’s general manager, says the Turkish institution is “one of the main enablers of [the] government’s export-led growth strategy and the largest development bank in Türkiye”, adding: “We remain committed to support Turkish exporters and strengthening their global competitiveness.”
The ICD is active across the Islamic Development Bank Group’s 56 member countries in Africa, the Middle East, Europe, Asia and Latin America, providing finance for private sector projects and encouraging the development of Islamic finance.
