ITFC to provide $3.3b for energy, fertiliser in FY27

The International Islamic Trade Finance Corporation (ITFC) has raised its trade finance facility for Bangladesh to $3.3 billion for fiscal year 2026-27 to support imports of fuel oil, liquefied natural gas (LNG) and fertiliser.

The financing marks a sharp rise from $2.23 billion provided in the previous fiscal year.

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A financing agreement was signed in Jeddah on Monday to that end, Mohammad Mizanur Rahman, additional secretary of the Economic Relations Division (ERD), confirmed to The Daily Star. ERD Secretary Md Shahriar Kader Siddiky and ITFC Chief Executive Officer Adeeb Yousuf Al Aama signed the agreement.

According to ERD officials, the package includes $2.5 billion for the Bangladesh Petroleum Corporation (BPC) to import fuel oil, $600 million for LNG imports and the rest is for fertiliser imports.

An ERD official said the financing ceiling was raised for the new fiscal year in view of ongoing tensions in the Middle East, which have heightened concerns over energy markets and import costs.

The ITFC financing carries a repayment period of 12 to 18 months, with interest rates ranging from the Secured Overnight Financing Rate (SOFR) plus 1.65 percentage points to SOFR plus 1.70 percentage points.