ITFC to provide $100m loan for fertiliser procurement

FE Team | Published: September 10, 2025 23:44:14

FE REPORT
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has approved US$100 million in financing for Bangladesh's fertiliser procurement.
The Bangladesh government signed the loan agreement with the Jeddah-based trade finance agency on Wednesday. The deal includes a Master Murabaha Financing Agreement and a Syndicated Murabaha Financing Facility, under which ITFC will initially provide $100 million in funding.
For the first time, ITFC has extended financing to Bangladesh's fertiliser imports, a move that officials said will directly strengthen the country's food security. Previously, the Bangladesh Petroleum Corporation (BPC) had used ITFC financing to import oil annually.
The signing ceremony was attended by a three-member Bangladeshi delegation led by ERD Secretary Md Shahriar Kader Siddiky. Other members included Dr Md Emdad Ullah Mian, secretary of the Ministry of Agriculture, and Md Kabir Ahmed, deputy governor of Bangladesh Bank.
On behalf of Bangladesh, the ERD secretary signed the Master Murabaha Financing Agreement, while the agriculture secretary signed the Syndicated Murabaha Financing Facility.
Md Shahriar Kader Siddiky highlighted the importance of ITFC's continued support in multiple sectors and expressed optimism about the organisation's role in bolstering Bangladesh's energy and food security.
ERD officials noted that the agreements underscore the significance of international partnerships and Bangladesh's commitment to achieving its strategic goals and sustainable development.