EDB launches first pilot project in Islamic finance
The Eurasian Development Bank (EDB) has launched its first Islamic finance pilot project, signing a General Commodity Murabaha Agreement with Eastcomtrans in Astana, Qazinform News Agency correspondent reports.
Financing will be provided through the Islamic Commodity Murabaha mechanism, an Islamic instrument in which a commodity is sold at a price that includes an agreed profit margin, paid in instalments, and directed toward the overhaul and maintenance of Eastcomtrans’s railcar fleet to improve freight transport efficiency and strengthen regional logistics.
“The project is a significant achievement for the EDB. It demonstrates our commitment to implementing financial instruments and expanding our business. The EDB plans to continue opening up new horizons that make a real contribution to the region’s prosperity,” Ruslan Dalenov, Vice Chairman of the EDB Management Board, said.
The EDB noted that the project also lays the foundation for the Bank’s future Islamic finance operations, supporting its goal of diversifying financial solutions for member countries.
Earlier, Qazinform News Agency reported that Eurasian Development Bank signed an agreement with UNDP, planning to provide a $5.3M grant for irrigation modernization in Kazakhstan.