The Government of Bangladesh and the International Islamic Trade Finance Corporation (ITFC) have signed two financing agreements to support fertiliser imports into Bangladesh, aimed at strengthening the country’s food security.
The agreements, which include a Master Murabaha Financing Agreement and a Syndicated Murabaha Financing Facility, will provide $100 million in financing from ITFC.
This is the first time that ITFC’s financing, traditionally used for Bangladesh Petroleum Corporation (BPC)’s oil imports, has been extended to fertilizer imports, said the Economic Relations Division.
The Master Murabaha Financing Agreement is a form of Islamic trade financing where the lender buys the product (fertilizers in this case) and sells it to the borrower at a marked-up price, with repayment made in installments. The Syndicated Murabaha Financing Facility involves a group of lenders providing funds to the borrower under similar terms.
The signing ceremony took place in Jeddah, Saudi Arabia, with a three-member delegation from Bangladesh led by Economic Relations Division Secretary Md Shahriar Kader Siddiky. Other members of the delegation included Ministry of Agriculture Secretary Dr Md Emdad Ullah Mian and Bangladesh Bank Deputy Governor Md Kabir Ahmed. Economic Relations Division Secretary Md Shahriar Kader Siddiky signed the Master Murabaha Financing Agreement, while Ministry of Agriculture Secretary Dr Md Emdad Ullah Mian signed the Syndicated Murabaha Financing Facility.
During the ceremony, Economic Relations Division Secretary Md Shahriar Kader Siddiky emphasized the role of ITFC in supporting various sectors and expressed hope that this agreement would help in strengthening Bangladesh’s energy and food security. The agreements reflect the importance of international collaboration to meet the country’s strategic goals for development.
