ITFC inks financing deals with five countries

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed agreements with five countries — Comoros, Mali, Djibouti, Indonesia and Mauritania — on the sidelines of the IDB Group’s 41st annual meeting held in Jakarta, Indonesia, recently. 

The first is a framework agreement with Comoros that ensures a total amount of $ 300 million to be financed over a period of five years. Comoros Minister of Economy and Finance Siti Kassim and ITFC CEO Eng. Hani Salem Sonbol inked the deal.

The agreement is for the purpose of financing the imports of petroleum products. ITFC hopes to mobilize financial resources from banks and financial institutions to finance these imports.

Sonbol, CEO ITFC, said: “As a leading Islamic trade finance solutions provider, this partnership is a milestone to boost the growth of Shariah Trade Finance in Comoros. Not only energy is critical for supplying the country with fuel and electricity, but it is very important for the development of SMEs to have access to affordable energy, which is essential for the country’s economic growth.”

Kassim said: “It’s an honor for the Comoros Union to sign the agreement with ITFC to finance the supply of petroleum products.”

ITFC’s  $ 180 million framework agreement with the government of Mali was signed by Dr. Boubou Cisse, minister of economy and finance Mali, and Eng. Sonbol.

This agreement aims to finance the two most strategic sectors in Mali - energy and agriculture.

Sonbol said: “The primary objective of ITFC is to promote trade and trade cooperation between OIC member countries. The imports of electricity, petroleum products and foodstuffs will be from neighboring member countries. ITFC facilitates the trade financing and hence contributes to intra-OIC trade”.

Cisse commented that ITFC financing will contribute to government efforts to secure electricity for the country, a critical energy component for social and economic development.”

The ITFC signed two murabaha agreements totaling $ 55 million, with the first agreement being in favor of the government of Djibouti represented by the ministry of economy and finance and Societe Internationale des Hydrocarbures de Djibouti (SIHD) as the executing agency for the purchase of goods and services, and the second agreement is a syndication for the purchase of petroleum products.

The agreements were signed by Mr. Simon Mibrathu, secretary general ministry of budget Djibouti, and Eng. Sonbol.

This financing aims to secure the supply of petroleum products fueling vehicles and power plants in the country, and support the economic growth in addition to supplying households with cooking fuel.

Also, ITFC signed two MoUs with Indonesia. The first MoU was signed by Irfan Anwar, chairman Coffee Association Indonesia, Mr. Armia Ahmed, chairman Association of Indonesian Coffee Exporters and Industries, and Eng. Sonbol in favor of  AICE Sumut (North Sumatra) and AICE Aceh for the cooperation on Coffee Exports Financing.

The second MoU was signed by Mr. Badruz Zaman, director of development, PT Asuransi Asei Indonesia, the state-owned insurer. This MoU will facilitate the provision of insurance products and services such as export and domestic credit insurance, credit guarantees and general insurance. 

Sonbol said through financing this commodity, we are certain that thousands of farmers will benefit.

Anwar said: “With this cooperation, we can support each other to increase the yield for the farmers; we can also increase the farmers’ knowledge and how they manage their own plantation.”

In yet another deal, ITFC signed a $ 12 million agreement with the government of Mauritania represented by the Ministry of Finance in favor of Pharmacie Centrale.

Mr. Cheikh El Kebir Moulaye Taher, deputy governor, Central Bank of Mauritania, alternate governor of IDB, and Eng. Sonbol signed the agreement.  This financing will contribute in supporting the country’s supply of critical medical products that sustain the people’s well-being and health.