ITFC executes first standalone letter of credit

The International Islamic Trade Finance Corporation, a member of the Islamic Development Bank Group, has 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 shipment of fertiliser from Tunisia to Bangladesh.

The import will enable Noapara Group, the importer, to facilitate the domestic supply of highly sought-after fertiliser 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 small and medium enterprises, by way of providing exporters risk mitigation for their sales to importers in Organisation of Islamic Cooperation member countries.

Commenting on the importance of the transaction, ITFC Chief Executive Officer, Hani Salem Sonbol, 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 fertiliser, which is essential for food security of Bangladesh. Agriculture is the largest employment sector in the country, employing around 38 per cent of the nation’s workforce and the timely import of fertilisers from Groupe Chimique Tunisien helps secure and support these jobs.”

Similarly, the City Bank Ltd Bangladesh Additional Managing Director and Head of Wholesale Banking, Trade Service, SME-Small and Micro-Finance, Sheikh Mohammad Maroof, stated, “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.”

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