This facility is designed to help Rabitabank expand its trade financing activities for the Private Sector, especially SMEs in Azerbaijan
The International Islamic Trade Finance Corporation (ITFC) and Rabitabank have signed a US$ 10 million Letter of Credit (LC) Confirmation Facility to meet the private sector's trade finance needs, particularly SME clients and contribute towards the promotion of Sharia-compliant trade financing solutions in Azerbaijan.
This agreement was signed between Eng. Hani Salem Sonbol, CEO of ITFC, and Dr. Aydin Huseynov, Chairman of the Management Board of Rabitabank. The facility will enable the Bank to offer trade finance solutions and contribute towards the development of Islamic finance in Azerbaijan.
The signed facility is recognized as the first LC Confirmation line extended by ITFC to Azerbaijan-based commercial banks and is aligned with ITFC's Private Sector Strategy, which emphasizes the expansion of partnerships with banks for supporting the private sector and small and medium enterprises in member countries, as well as the expansion of LC Confirmation business.
Commenting on the signing, the CEO of ITFC, Eng. Hani Salem Sonbol stated: “This new partnership with Rabitabank comes to reactivate our interventions in Azerbaijan and highlight our commitment to the growth and the development of its private sector. ITFC remains at the forefront of the promotion of Sharia-compliant trade financing in OIC member countries and we see this new signing as a clear support for the development of Islamic finance offerings in Azerbaijan.”
Chairman of the Management Board of Rabitabank, Dr. Aydin Huseynov, in his turn remarked: “We are elated to welcome ITFC back to Azerbaijan and to formalize this essential agreement. Our joint efforts will play a pivotal role in addressing the trade finance requirements of SMEs, facilitating their growth and contributing to the overall economic prosperity of our community. This partnership will also be crucial in promoting the principles of Sharia-compliant finance.”
Since 2009, ITFC has provided US$ 83.4 million to various private sector clients in Azerbaijan. ITFC values its cooperation with Azerbaijan and invests in the country's trade development by providing the needed financing to local commercial banks.