International Islamic Trade Finance Corporation signs ten high-level trade deals worth over US $ 1.2 billion

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The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank Group (IDB), has signed ten major trade finance agreements worth more than US $ 1.2 billion, and trade development agreements with its member countries in ‘Asia and Africa, at 46e The IsDB Group’s annual meeting of the IsDB Group was held in Tashkent, Uzbekistan, earlier this month.

In addition, framework agreements, which provide for public and private sector financing, as well as trade-related technical assistance programs for export development and SME development initiatives, target high-growth industries, including agriculture and energy, and support the purchase of essential medical supplies.

ITFC CEO, ing. Hani Salem Sonbol commented, “We are proud to have signed 10 trade finance agreements and trade development agreements at 46e IDB Annual Meeting. The impact of these agreements will be significant for ordinary citizens and greatly increase their economic prosperity. This important step also reaffirms the mutual trust between our member countries throughout CIS and regions of Africa and ITFC teams. Furthermore, ITFC is dedicated to supporting economic growth among OIC member countries, especially during the difficult times of the COVID-19 pandemic period.

Funding Agreements:

Signature of an addendum to the $ 1.5 billion framework agreement between ITFC & Burkina Faso: A framework agreement of 1.5 billion US dollars over 5 years between ITFC and the government of Burkina Faso was initially signed in October 2018 to define the main areas of cooperation. Following the global crisis linked to COVID-19, ITFC CEO and HE Lassane Kabore, Minister of Economy, Finance and Development of Burkina Faso, signed an Addendum to the revised Framework Agreement. ITFC contribute to the financing of priority projects in Burkina Faso in the agricultural sector, the health sector and the private sector, including, but not limited to, the export of agricultural products and the import of energy products, such as refined petroleum products, the provision of financing to secure the importation of drugs and health equipment, and the implementation of technical assistance programs for strategic sectors of the national economy.

Signature of a 3-year contract, EUR 330 million Framework agreement between ITFC and the Union of the Comoros: To strengthen cooperation between ITFC and the Union of the Comoros, ITFC CEO and the Deputy Governor of the Union of the Comoros HE Mr. Fouady Goulame signed a EUR 330 million 3-year framework agreement to support the country’s food and energy security with the import of strategic products such as petroleum products, rice and other foodstuffs in accordance with the strategic requirements of the Comoros. The Accord will also provide support to the health sector and SME support funding and propose technical assistance projects to support the country’s national development goals.

Signature of several Murabaha agreements as part of the action plan for 2021 between ITFC and Mauritania: Mohamed Lemine Ould Dehbi, Minister of Finance, Mauritania with ITFC CEO signed a Murabaha trade finance agreement to support the country’s health sector. As part of this agreement, ITFC will provide $ 10 million CAMEC, the government entity responsible for the distribution of drugs in the public sector, and an additional US $ 20 million to SNIM, Africa’s second-largest producer of iron ore and a major player in the country’s economy. A renewal of the establishment with SOMELEC, a public company responsible for ensuring the country’s energy security (electricity production) was also signed to support national development objectives in the energy sector.

Amendment to the framework agreement with Uzbekistan. A $ 500 million deal was signed between ITFC and the Republic of Uzbekistan in 2019. The aim of the amendment is to expand cooperation by including new areas, to extend the validity of the agreement for an additional year, to clarify the existing text and, most importantly, to increase the content of the financing from 12 months to 24 months. This extension will allow ITFC better meet the financing needs of government entities and the private sector in Uzbekistan. This was signed by Mr. Shukhrat Vafaev, Deputy Minister of Investments and Foreign Trade of the Republic of Uzbekistan (Deputy Governor of the IDB).

Murabaha Accords as part of the US $ 500 million framework agreement signed between the Republic of Uzbekistan and ITFC in 2019, to help SMEs recover from the negative impact of COVID-19 pandemic, as part of the IsDB 3R program:

Trustbank – Signing of a US $ 15 million trade finance line agreement between ITFC and Private Joint Stock Bank Trustbank. Ing. Hani Salem Sonbol, CEO ITFC and Mr. Sardor Normukhamedov, Chairman of the Board, signed a US $ 15 million Murabaha facility to meet the trade finance needs of the private sector and SME Trustbank customers. Trustbank is an existing partner, signing the third finance facility in Uzbekistan, making it the most active private sector partner in ITFC in Uzbekistan.

Integrated business solution in Uzbekistan

Turonbank – Signature of US $ 10 million trade line financing terms between ITFC and “Turonbank” Commercial Joint Stock Bank, Uzbekistan. ITFC signed a US $ 10 million Murabaha with Joint-Stock Commercial Bank Turonbank to meet the trade finance needs of the private sector and SME bank customers.

Turonbank – Technical assistance agreement between ITFC and JSCB Turonbank on strengthening the capacity of Turon Bank on IFRS report. As part of its new strategy to offer integrated trade development solutions for the benefit of its member countries, ITFC agreed to provide and support a technical assistance project for the benefit of the bank. In this regard, ITFC will help Turonbank develop its internal capacity to transform its financial reporting into IFRS under ITFCtechnical assistance from.

Other agreements

Mourabaha trade finance Amendment to the agreement between STO, Maldives for US $ 75 million to finance the purchase of fuel and basic food. Mr. Husen Amru Mohamed Rashad, Chief Executive Officer and Director General of the State Trading Organization (STO) and ITFC CEO signed a renewal agreement. By this agreement, ITFC supports STOfinancing of strategic petroleum products and staple food imports. Funding is essential to feed the livelihoods of the people and support the recovery of the tourism sector for the economic growth of the country.

Grant agreement of US $ 50,000 for medical equipment. The Government of Bangladesh, represented by Ms. Fatima Yasmin, Secretary of the Economic Relations Division (DER), Ministry of Finance of the People’s Republic of Bangladesh and Deputy Governor of the IDB, and ITFC CEO signed a grant agreement for the supply of five machines to Bangladesh public hospitals whose facilities are overwhelmed by the influx of COVID-19 patients. The project will strengthen the country’s capacity in terms of pandemic preparedness and response by providing the appropriate treatment for the critical state of COVID-19 patients.

ITFC and the sign of the Islamic Food Processing Association PE Partnership to extend the financing of private entities in the agricultural sector. FIPA CEO, Sheikh Bilal Khan and ITFC CEO signed a memorandum of understanding with the aim of providing access to finance for SMEs through local banks and assisting private sector companies in the agribusiness chain in some OIC member countries. FIPA is one of the strategic initiatives proposed by the Islamic Organization for Food Security at the Second General Assembly held in Jeddah, Saudi Arabia, in August 2019. To strengthen food security, FIPA supports companies in the agri-food sector to get out of the COVID-19 global pandemic by pursuing growth opportunities.

Distributed by APO Group on behalf of the International Islamic Trade Finance Corporation (ITFC).

Media contact:
Twitter: @ITFCCORP
Facebook: @ITFCCORP
LinkedIn: International Islamic Trade Finance Corporation (ITFC)
Phone. : +966 12 646 8337
Fax: +966 12 637 1064
E-mail: ITFC@ itfc-idb.org

About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IDB) group. It was created for the main purpose of advancing trade between OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of people around the world. Commissioned in January 2008, ITFC provided $ 58 billion in funding to OIC member countries, making it the leading provider of business solutions for the needs of these member countries. With the mission to become a catalyst for the development of trade for OIC member countries and beyond, the Company helps entities in member countries gain better access to trade finance and provides them with the necessary tools for trade-related capacity building, which would enable them to compete successfully in the global marketplace. .

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International Islamic Trade Finance Corporation signs ten high-level trade deals worth over US $ 1.2 billion
International Islamic Trade Finance Corporation (ITFC)

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