The Jeddah-based International Islamic Trade Finance Corporation (ITFC) would provide Bangladesh with US$2.75 billion annual financing support for the development of energy and agricultural sectors.
To this effect, the ITFC inked a financing plan deal with Bangladesh government at a ceremony during an official visit by the high-level delegation from Bangladesh at the ITFC headquarters in Saudi Arabia recently.
ITFC Chief Operating Officer Nazeem Noordali and Secretary of Economic Relations Division (ERD) of the Ministry of Finance, Bangladesh Md. Shahriar Kader Siddiky inked the agreement on behalf of their respective sides, a statement said on Monday.
The financing plan aims to facilitate the import of petroleum products, Liquefied Natural Gas (LNG) and fertilizers by Bangladesh Petroleum Corporation (BPC), Bangladesh Oil, Gas & Mineral Resources Corporation (Petrobangla) and Bangladesh Agricultural Development Corporation (BADC) respectively.
The financing plan will cover the period from July 2025 to June 2026.
Officials familiar with the ITFC financing said of the total, a sum of $1.65 billion would be available for importing petroleum products, $600 million for LNG and $500 million for fertiliser.
The financing would be hard term in nature, they said, adding that the proposed financing would carry a six-month SOFR plus nearly 2.0 per cent rate of interest and administrative fee.
A member of the Islamic Development Bank (IsDB) Group, the ITFC has provided over US$ 19 billion to Bangladesh, the statement said.
It also added that the latest agreement is a continuous testament to the long-standing successful partnership between the two parties.
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