Turkic Investment Fund gains access to $50M Islamic financing channel

A document signed as part of the Islamic Development Bank (IsDB) Group's annual meetings in Baku opens access to an Islamic financing channel that will allow the Turkic Investment Fund to direct up to $50 million to support the private sector in five common member states, including Azerbaijan.

The Turkic Investment Fund told Report that the signed agreement launches the new Managed Islamic Co-Financing Program (MICFP), a specialized platform through which the Turkic Investment Fund will carry out co-financing with the Islamic Corporation for the Development of the Private Sector (ICD).

"MICFP is the Turkic Investment Fund's first structured project in the field of Islamic finance. Through the program, the Fund gains access to ICD's expertise in this area, its network of partner financial institutions and operational experience accumulated in the region. The funds will be distributed through local partner financial institutions for further lending to small and medium-sized businesses (SMEs) in the five common participating states of both structures: Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye and Uzbekistan," the Fund said.

Under the agreements reached, ICD will undertake the functions of sourcing, structuring and managing each credit facility. The corporation will also invest its own capital in each project together with the Turkic Investment Fund, ensuring the alignment of interests between the two institutions.

The signed framework agreement provides the Turkic Investment Fund with a number of key strategic advantages, including expanding outreach to micro, small and medium-sized businesses through partner financial institutions, supporting the development of Islamic finance in participating states, and strengthening financial connectivity across the Turkic region.