Agreements Signed on the Sidelines of the 2023 Islamic Development Bank Group (IsDB) Annual Meetings in Jeddah, Saudia Arabia
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has signed six major agreements with Cote d’Ivoire, Egypt, Uzbekistan, and Saudi Arabia totaling US$101 million on the second day of the 2023 IsDB Group Annual Meetings, held in Ritz Carlton Hotel, Jeddah, Saudi Arabia.
The agreements will address the trade financing needs of the private sector, enabling businesses to purchase needed inputs, secure raw materials, and develop global supply chains, thereby fostering stronger economic growth.
ITFC signed US$25 million Financing facility with Invest Finance Bank, Uzbekistan. This agreement aims to support the import and pre-export financing needs of private sector clients, particularly SMEs.
Also, ITFC renewed a US$15 million Financing facility in favor of Uzbek Industrial and Construction Bank, Uzbekistan to meet the Islamic trade finance needs of private sector clients of the bank, particularly the SMEs.
Additionally, a Partnership Agreement was signed between ITFC and Expolink under the AfTIAS 2.0 Program. This agreement paves the way for the establishment of a specialized export development capacity building and training center to benefit new and existing exporters from Africa and the Arab World. The agreement was signed by Mr. Mohamed Kassem, Chairman, Egyptian Exporters Association (Expolink), Mrs. Mary Kamel, Executive Director, Foreign Trade Training Center (FTTC), and Eng. Hani Salem Sonbol, CEO of ITFC.
A EUR 20 million Murabaha Financing facility was signed between ITFC and Bridge Bank Group Cote d’Ivoire (BBGCI) targeting the trade finance needs of private sector clients of the bank, with a particular focus on essential commodities such as petroleum products and staple food imports. This financing is implemented under the US$250 million Framework Agreement between ITFC and Cote d’Ivoire .
Furthermore, ITFC extended EUR40 million Letter of Credit (LC) Confirmation Facility to the Bank of Africa, Cote d’Ivoire to meet the un-funded trade financing needs of private sector clients of the bank. It is worth noting that Bank of Africa Cote d’Ivoire is a new partner bank of ITFC in Cote d’Ivoire.
An Agreement signed between ITFC and Saudi EximBank within the framework of KSA SMEs Export Empowerment Program for joint collaboration to enhance the competitiveness of Saudi small and medium companies and institutions in penetrating international markets. This is done by providing lines of financing for international financial institutions in countries that import goods from the Kingdom of Saudi Arabia.
The aim of these lines is to provide financing to importers who import goods from Saudi exporters to SMEs. This financing option will allow exporters to grant longer credit terms and thus increase the exports of Saudi SMEs to their existing customers and entice new importers of Saudi commodities.