ITFC’s approval supports the timely import of fertilizer for agriculture and agri-food processing industries in Bangladesh while enhancing food security and boosting intra-OIC trade flows
Jeddah, Kingdom of Saudi Arabia: The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has advised and confirmed the first standalone Letter of Credit in favour of Groupe Chimique Tunisien in Tunisia under the recently approved LC Confirmation Facility.
The LC which was issued by City Bank Ltd Bangladesh facilitated the timely shipment of fertilizer from Tunisia to Bangladesh, an intra-OIC trade flow. The import will enable Noapara Group, the importer, to facilitate the domestic supply of highly sought-after fertilizer to farmers for the production of staple foods for the country.
ITFC’s newly developed standalone LC Confirmation instrument is open to all segments of clients but targeting mainly SMEs, by way of providing exporters risk mitigation for their sales to importers in OIC member countries.
Commenting on the importance of the transaction, Eng. Hani Salem Sonbol, ITFC CEO, said: ‘ITFC is delighted to have taken another crucial step towards enhancing trade finance products and solutions aimed at supporting private sector clients, through partnership with the local financial institutions, to advance trade operations and improve livelihoods. The LC Confirmation facility provided to The City Bank Limited has facilitated the smooth procurement of fertilizer, which is essential for food security of Bangladesh. Agriculture is the largest employment sector in the country, employing around 38% of the nation’s workforce and the timely import of fertilizers from Groupe Chimique Tunisien helps secure and support these jobs.”
Commenting on the LC Confirmation facility from ITFC, City Bank Ltd Bangladesh Additional Managing Director and Head of Wholesale Banking, Trade Service, SME-Small and Micro-Finance Sheikh Mohammad Maroof, commented, “It is a privilege for City Bank to be ITFC’s partner in their first standalone LC confirmation transaction. We appreciate ITFC’s continuous efforts towards enhancing trade facilities for OIC member countries including Bangladesh. We are looking forward to the development of Bangladesh’s agriculture and private sector with support from ITFC.”
Md. Saidur Rahman, MD of NoaparaGroup said, “I would like to thank City Bank and ITFC for the smooth execution of the transaction. This partnership has vastly improved the value we can provide to the end users of the fertilizer – our farmers.”
The ITFC LC Confirmation product is structured to allow exporters to gain assurance from a multi-lateral financial institution to secure payment while mitigating the credit and country risks of the LCs Issuing Banks.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) 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 more than 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.