The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has extended a $10 million trade finance line to the Uganda Development Bank Ltd.
The financing is intended to bolster industrialization efforts in Uganda and assist with job creation and poverty reduction endeavors. Additionally, it aims to advance development objectives in Uganda, support trade, and address the country’s developmental needs.
The ITFC offers advisory and financial services to IsDB member states, focusing on trade, Islamic finance, and sustainable development across both the public and private sectors.
Susan Namiyingo Senior Treasury Officer, UDB
“Uganda Development Bank would like to extend its appreciation to ITFC for taking a solid interest in the projects it funds, and customizing solutions unique to our business needs, while also helping to advance the nation’s development goals.”
Last month, the Islamic Development Bank was reaffirmed with a “AAA” credit rating and a “Stable Outlook” by Moody’s Ratings. The short-term issuer rating has been affirmed at Prime-1, the highest tier on offer.
The affirmation reflects Moody’s expectation that IsDB’s capital position and asset performance will remain robust, supported by the strong liquidity & funding position, low funding costs, and the Bank’s preeminent position as one of few regular issuers of highly-rated benchmark-size sukuk in the international capital markets.
The Bank’s very strong credit profile also benefits from the track record of member country support demonstrated through a series of general capital increases (GCIs) as well as the recent special capital increase (SCI), as a result of which the IsDB’s leverage ratio is expected to remain significantly below the median for Aaa-rated MDBs.
