Jeddah, Saudi Arabia – The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, in partnership with Saudi EXIM Bank and the OPEC Fund for International Development (OPEC Fund), announced the signing of a landmark US$100 million Murabaha Financing Facility in favor of the People’s Republic of Bangladesh. The agreement marks a major milestone in supporting Bangladesh’s national food security strategy and enhancing intra-OIC trade cooperation.
The facility will provide funding for the importation of fertilizer by the Bangladesh Agricultural Development Corporation (BADC) from Kingdom of Saudi Arabia. BADC will serve as the executing agent for the Government of Bangladesh in this financing operation.
This transaction is part of a broader US$2.75 billion financing plan agreed in December 2024 between ITFC and the Government of Bangladesh to cover the Government’s financing requirements for the 2025–2026 fiscal year. The plan aims to support energy and food security for Bangladesh, providing funding for the supply of critical commodities, including petroleum products, LNG, and fertilizers.
This facility represents the first ITFC sovereign financing to Bangladesh for fertilizer imports, further diversifying its financing portfolio and aligning with its strategic goal of supporting agricultural resilience in member countries.
Bangladesh’s agriculture sector remains a cornerstone of its economy, contributing 11% to GDP and employing over one-third of the national workforce. The financing is expected to benefit approximately 7.9 million people, directly or indirectly engaged in agricultural production, particularly rice farming, which is central to the country’s food security and rural livelihoods.
“This initiative represents the first time ITFC has partnered with Saudi EXIM Bank and the OPEC Fund in a syndicated Murabaha facility dedicated to supporting food security in Bangladesh,” said Eng. Adeeb Y. Al Aama, CEO of ITFC. “It also marks a milestone in leveraging the strength of partner institutions to promote intra OIC trade flows. Through this facility, we reaffirm our commitment to sustainable trade and inclusive development by strengthening intra-OIC cooperation and supporting the vital agricultural sector in Bangladesh.”
Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, Government of the People’s Republic of Bangladesh, expressed his profound appreciation for ITFC, Saudi EXIM Bank, and the OPEC Fund for their invaluable and timely support in addressing critical national needs. He remarked, “The US$100 million syndicated financing facility represents a pivotal initiative to ensure the uninterrupted supply of fertilizers to our farmers. This initiative is not merely about financing; it is about safeguarding Bangladesh’s food security, promoting agricultural resilience, and ensuring the well-being of millions of rural households who depend on farming for their livelihoods. Such a significant partnership underscores the importance of shared commitment to sustainable development, economic inclusivity, and the prosperity of our people.” This partnership, he noted, is a testament to the enduring spirit of cooperation in driving forward a vision of growth, stability, and development for future generations.
Saudi Export-Import Bank (Saudi EXIM) has announced landmark agreement aimed at advancing global trade and enhancing food security by promoting the Kingdom’s non-oil exports, with a focus on its world-class fertilizers.
H.E. Eng. Saad bin Abdulaziz AlKhalb, CEO of Saudi EXIM, stated: “This agreement reflects Saudi Exim’s leading role in driving sustainable economic growth and reinforcing global supply chains. We are proud to partner with ITFC and the OPEC Fund to deliver innovative financing solutions that expand market access for Saudi products. These efforts not only meet the needs of Bangladesh but also foster deeper economic integration and sustainable development, aligning with Vision 2030’s objective to diversify our national economy. Through this collaboration, Saudi Exim will support critical supply chain financing, open new markets, and strengthen trade links between Saudi Arabia and key global partners. The initiative highlights the Kingdom’s commitment to leveraging its export capabilities to address essential global needs while driving long-term economic resilience.”
OPEC Fund President Dr. Abdulhamid Alkhalifa said: “The OPEC Fund is committed to supporting Bangladesh’s development agenda, where agriculture plays a central role, employing nearly half of the workforce. Bangladesh has made remarkable progress in achieving food security for its growing population, yet the sector remains particularly vulnerable to climate change. We thank ITFC and Saudi Exim as partners in this joint financing, which will help tackle these challenges by promoting higher productivity and greater diversification. The loan aligns closely with the OPEC Fund’s strategic priorities – particularly food security – and exemplifies our strong commitment to partnering with our member countries, such as Saudi Arabia, to advance South-South cooperation and sustainable development across the globe.”
The transaction also aligns with the broader development agendas of the partners, particularly in advancing South-South cooperation and contributing to several United Nations Sustainable Development Goals (SDGs), including Zero Hunger, No Poverty, and Good Health and Wellbeing.
The International Islamic Trade Finance Corporation (ITFC) has provided over US$20.8 billion in financing to Bangladesh since its inception in 2008, with a strong focus on the energy sector. This new initiative marks a strategic diversification of ITFC’s engagement, expanding support to the agriculture and food sectors. It also reflects Bangladesh’s growing strategic importance within ITFC’s development portfolio.
About the International Islamic Trade Finance Corporation (ITFC)
The International Islamic Trade Finance Corporation (ITFC) is the trade finance arm of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$89 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.