• On November 15, 2024, ICD mobilized and disbursed for KIC the funds that will be used to finance eligible private sector enterprises, particularly SMEs in Kazakhstan.
• The Commodity Murabaha Financing Agreement between ICD and «Kazakhstan Ijara Company» JSC (KIC) was signed in September 2024.
• The Facility shows ICD’s commitment to promoting Islamic finance and financial inclusion in Kazakhstan.

Jeddah, November 15, 2024 - Islamic Corporation for the Development of the Private Sector (ICD) disbursed for «Kazakhstan Ijara Company» JSC (KIC) a Kazakhstan Tenge (KZT) denominated Shari’a compliant financing facility amounting KZT 2.4  billion to support private sector businesses, especially small and medium-sized enterprises (SMEs), in Kazakhstan. The Commodity Murabaha Financing Agreement between ICD and KIC was signed in September 2024.

To facilitate the Kazakhstani Tenge disbursement, ICD secured the KZT via an Islamic cross-currency swap. Through this transaction, ICD ensures it continues to receive USD repayments (from its swap counterparty), while KIC benefits from the financial stability of fixed debt service costs in KZT. This transaction will further expand the Emerging Market’s local currency solutions, offered by ICD, to its member countries.

This local currency transaction is the second of its kind for ICD that can be replicated in other member countries. In 2023, ICD issued its first Kazakhstan tenge-denominated Sukuk, raising KZT 2 billion with an auction of a five-year amortized Sukuk facility. Consequently, the successful implementation and closing of the swap transaction will pave the way for ICD to expand its outreach in Kazakhstan.

The funds will be used by KIC to provide Shari’ah-compliant financing in the national currency of Kazakhstan to eligible private sector enterprises across various sectors of the economy. This LoF reinforces ICD’s commitment to promoting private sector development in its member countries and supporting Islamic finance worldwide, and KIC’s dedication to economic growth and fostering financial inclusion in Kazakhstan. With this Facility, ICD and KIC are providing a boost to the private sector businesses in Kazakhstan, particularly SMEs, which play a crucial role in the country’s economic growth and development.

About the Islamic Corporation for the Development of the Private Sector (ICD):

ICD is a member of the Islamic Development Bank (IsDB) Group and focuses on supporting economic development and private sector growth in its member countries through Shariah-compliant financing and investment solutions. ICD also offers advisory services to foster the establishment, expansion, and modernization of private enterprises. The organization is highly rated by international credit agencies: A2 by Moody’s, A+ by Fitch, and A- by S&P.

For further details, please contact: Nabil El-Alami Communications & Corporate Marketing Division Manager nalami@isdb.org.

About Kazakhstan Ijara Company (KIC)

Kazakhstan Ijara Company (KIC) is the first Sharia compliant leasing company in Kazakhstan has been founded in April 2013 as a partnership of ICD and by diverse group of international and local investors. Registered Charter capital is $40 mln and the initial paid up capital of KIC is $28 mln. The company operates in the field of Islamic leasing and provides Ijara and Murabaha financing facilities to all sectors of the economy, with the focus to support the development of small and medium enterprises (SMEs) by providing alternative sources of Sharia compliant financing for their projects.

For more information visit the Company’s website at: https://kic.kz/