Bangladesh signs first fertiliser financing deal with ITFC

Bangladesh has signed a financing agreement with the International Islamic Trade Finance Corporation (ITFC) to support fertiliser imports.

The agreement, signed today in Jeddah of Saudi Arabia, includes two instruments — a master Murabaha financing agreement and a syndicated Murabaha financing facility — under which $100 million will be provided initially, according to a press release.

The ITFC, a member of the Islamic Development Bank (IsDB) Group, has previously supported Bangladesh in importing petroleum products through the Bangladesh Petroleum Corporation (BPC).

This is the first time such financing is being used for fertiliser imports, according to the statement.

A three-member delegation from Bangladesh, led by Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), attended the signing.

The delegation included Md Emdad Ullah Mian, agriculture secretary, and Md Kabir Ahmed, deputy governor of Bangladesh Bank.

The ERD secretary signed the master Murabaha financing agreement, while the agriculture secretary signed the syndicated Murabaha financing facility.

At the event, Siddiky noted ITFC's role in supporting various sectors.

He said the agreement would support Bangladesh's efforts in food and energy supply.

He also said international cooperation contributes to Bangladesh's development plans.

The financing is expected to assist in the import and distribution of fertilisers, which are used in domestic food production.

The agreement is in line with Bangladesh's development programmes related to food supply and trade finance, the press release added.