ICD, TuranBank Sign USD 15m Shariah-Compliant SME Financing Deal to Support Private Sector in Azerbaijan
Sunday Okobi in Baku, Azerbaijan
The Islamic Corporation for the Development of the Private Sector (ICD) and TuranBank OJSC have signed an Expression of Intent for a proposed USD 15 million Shariah-compliant Line
of Finance to support private sector projects in Azerbaijan.
At the signing ceremony, which took place on
The opening of the Private Sector Forum alongside the IsDB Group Annual
Meetings, both parties said the proposed facility, subject to due diligence and internal approvals, would be
extended to TuranBank for onward financing to eligible SMEs.
As a mid-tier commercial bank with strong expertise in MSME and SME financing, they stated that TuranBank is well-positioned to deploy the funds effectively through its existing infrastructure.
The facility, it was learnt, supports Azerbaijan'’s SME sector by bridging financing gaps for smaller
Enterprises, adding that ICD aims to reach a significant number of SMEs across the country through TuranBank.
ICD’s engagement with TuranBank dates back to 2006, with cumulative
commitments exceeding USD 33 million, including a USD 15 million Line of Finance
Concluded in September 2025.
It was further learnt that the Expression of Intent signals a deepening of that
long-standing partnership.
The transaction advances ICD’s mandate to mobilise Shariah-compliant financing for private sector growth, employment, and economic resilience across its 56 member
countries.
It was further learnt that TuranBank OJSC is a mid-tier commercial bank in Azerbaijan with a pronounced focus on MSME and SME financing. As of Q3 2025, the bank reported total assets of AZN 893 million and a loan portfolio of AZN 696 million, with operating profit growing by 57 percent year-on-year in H1 2025.
The group disclosed further that TuranBank maintains an active international partnership profile, having secured financing from ADB, BlueOrchard, and ICD, the latter extending a USD 15 million Line of Finance in September 2025 for a five-year term to support SME lending in Azerbaijan. The Bank has also demonstrated a commitment to digital transformation through the launch of Open Banking functionality and was recognised as the winner of the Best SME Deal of the Year at the ADB’s Trade and Supply Chain Finance Programme Awards in Singapore.
It added that TuranBank represents a credible, growth-oriented second-tier institution with a clear strategic niche and strengthening DFI relationships.
