Bangladesh has launched high-level negotiations in Jeddah, Saudi Arabia, to secure a US$3.30 billion trade financing package from the International Islamic Trade Finance Corporation (ITFC) to finance imports of fuel, liquefied natural gas (LNG) and fertiliser in fiscal year 2026-27, officials said on Saturday.
The four-day annual financing planning meeting, scheduled for June 27-30, is being led by Economic Relations Division (ERD) Secretary Shahriar Kader Siddiky.
Officials from the Energy and Mineral Resources Division (EMRD), Bangladesh Petroleum Corporation (BPC), Petrobangla and the Ministry of Agriculture are also participating in the negotiations with the ITFC, the trade finance arm of the Islamic Development Bank (IsDB).
The talks come as the government seeks to expand external trade financing to cushion foreign exchange reserves against geopolitical uncertainties and volatility in global energy markets.
The negotiations will determine financing allocations for state-owned agencies that rely heavily on Islamic trade finance to import essential commodities.
"We have decided to seek a $3.30 billion financing package from the ITFC. The funds will be used to import crude and refined petroleum products, LNG and fertiliser," a senior ERD official said ahead of the meeting.
He added that Bangladesh is expected to sign the financing agreement with the ITFC during the Jeddah session.
According to the ERD's preliminary proposal, Bangladesh has sought $2.50 billion for BPC to import crude oil and refined petroleum products to ensure uninterrupted fuel supplies for power generation and transport.
Petrobangla has requested $600 million to finance LNG imports amid supply disruptions linked to tensions in the Middle East.
The Bangladesh Agricultural Development Corporation (BADC) has sought another $200 million to import fertiliser to safeguard domestic food production.
Bangladesh has also formally requested the ITFC to raise its country financing ceiling to $3.50 billion from the existing limit, citing the need for greater fiscal flexibility amid global commodity market disruptions.
The ITFC has been a key source of trade finance for Bangladesh since assuming the IsDB's petroleum import financing programme in 2008. The IsDB had originally begun financing BPC's petroleum imports in 1997.
Between 2008 and the end of FY2025-26, the Jeddah-based lender provided Bangladesh with about $21.77 billion in trade financing.
While ITFC financing was historically used exclusively for petroleum imports, the programme has gradually expanded to include other strategic commodities.
A major shift came in September 2025, when Bangladesh signed its first syndicated Murabaha financing facility for agricultural imports, extending the programme beyond the energy sector to strengthen food security.
However, implementation of the current $2.75 billion annual financing programme, signed in early 2025, encountered several challenges.
The ITFC extended a $100 million agricultural credit line at the six-month US dollar Secured Overnight Financing Rate (SOFR) plus a 1.75-percentage-point margin.
Disbursement was later suspended because the financing was tied to fertiliser procurement from Saudi Arabia, while regional instability disrupted supplies.
As a result, BADC is seeking greater flexibility in the new agreement, requesting permission to source fertiliser from any international supplier rather than being restricted to a single country.
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