The International Islamic Trade Finance Corporation has approved a $15m Murabaha Financing Facility in favour of City Bank Limited in Bangladesh to support the bank’s private sector businesses, particularly Small and Medium-sized Enterprises importing raw materials.
ITFC is a member of the Islamic Development Bank Group.
City Bank is the latest partner institution to work with ITFCas it expands 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 Organisation of Islamic Cooperation member countries face the social and economic effect of the coronavirus disease, which has disrupted global trade and strained financial resources.
City Bank Additional Managing Director, Sheikh Mohammad Maroof, discussed how the Murabaha financing facility will enable the bank to give better value to its importing clients through extensive links and support of ITFC and IsDB.
“We are committed to providing our clients with the best possible service. We take a very keen interest in the private sector, which is a major driver in the economy of Bangladesh, and we look forward to seeing the new partnership make a lasting contribution to private sector development and socio-economic growth in Bangladesh,” he added.
Commenting on the facility, ITFC CEO, Hani Salem Sonbol, said, “We are proud to partner with City Bank Bangladesh in supporting SME growth and the import of raw materials in Bangladesh. A central tenet of the ITFC strategy is to provide financing to local partner financial institutions like City Bank to facilitate SME access to financing that is key for the country’s economic growth and their ability to participate in global value chains. As such, it is contributing to the development of intra-OIC trade flows and ultimately leading to socio-economic development in our member countries.”
The financing and grants being rolled out by ITFC, as part of the IsDB Group COVID-19 Response Package, are supporting preparedness for the pandemic through the provision of medical supplies, staple foods and fertiliser for agricultural production to OIC countries, including Bangladesh, Egypt, Kyrgyzstan, the Maldives and Senegal.