ITFC partnership will enable one of Bangladesh’s key financial institutions to reach out and provide financial support to more SMEs
Dakar, Senegal: The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has approved a Murabaha Financing Facility in favour of Eastern Bank Limited in Bangladesh to support the Bank’s private sector business, particularly SMEs importing raw materials.
Eastern Bank is the latest partner institution to work with ITFC expanding its financing outreach to the private sector through local banks in Bangladesh. The financing comes at a critical time for SMEs in Bangladesh and other OIC member countries facing the social and economic effects of the coronavirus pandemic, which has disrupted global trade, supply chains and stretched financial resources.
Eastern Bank Managing Director and Chief Executive Officer, Ali Reza said: “this Murabaha financing facility will enable EBL to provide better value to its clients through the extensive links and support of ITFC and IsDB. This financing facility is a manifestation that EBL is always looking to offer innovative trade products and tailored financing solutions for our clients. This important relationship with ITFC will ensure growth of EBL’s corporate and SME clients and will contribute further to trade business of the country.”
Commenting on the Murabaha financing facility, Eng. Hani Salem Sonbol, ITFC CEO, said: “We are pleased to announce the partnership with Eastern Bank Limited in supporting SME growth in Bangladesh. Such collaborative approach is meant to facilitate SME access to financing and that is key in the country’s economic growth and ability to expand participation in global value chains. ITFC continues to extend support in trade development and ultimately leading to socio-economic development for our member countries.”
The financing and grants being rolled out by ITFC, as part of the IsDB Group COVID-19 Response Package, are supporting preparedness for the pandemic through the provision of medical supplies, staple foods and fertilizer for agricultural production in OIC countries with interventions in several countries including Bangladesh, Egypt, Kyrgyzstan, the Maldives and Senegal.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$53.9 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.