ITFC And Prime Bank Sign US$15 million Murabaha Financing Facility To Support SMEs In Bangladesh
By Ron Chen, Correspondent ASEAN Region
The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has approved a US$15 million Murabaha Financing Facility in favour of Prime Bank Limited, Bangladesh to facilitate cross-border import transactions of the bank’s private sector businesses, particularly SMEs.
Prime Bank and ITFC signed the financing agreement to boost the rebounding of SMEs in readiness to the return to growth post pandemic. ITFC is continuously expanding its financing outreach to the private sector through local banks in Bangladesh. The financing comes at a critical time as SMEs in Bangladesh and other OIC member countries are currently recovering from the economic effects of the coronavirus pandemic.
“We are very delighted to conclude the Murabaha Trade Financing agreement with International Islamic Trade Finance Corporation which will expand our trade finance capacity. The support from ITFC has strategic value and significance as it comes at a time when businesses are striving to make a comeback from the fallout of the prevailing pandemic. The arrangement will be greatly beneficial for our SME and Corporate segments. This unique solution will strengthen the existing bilateral relationship with ITFC and other member organizations of Islamic Development Bank.” said Acting Managing Director and CEO of Prime Bank, Faisal Rahman.
Commenting on the Murabaha Financing Facility, ITFC CEO, Eng. Hani Salem Sonbol said: “We are proud to partner with Prime Bank Limited and provide financing to the bank to support SME growth and the import of raw materials in Bangladesh. Private sector development is key for the country’s economic growth and supporting SMEs gain access to financing is a central tenet of the ITFC strategy, which also helps SMEs to participate in global value chains. As such, we are contributing to the development of intra-OIC trade flows and ultimately leading to socio-economic development in our member countries.”
