The International Islamic Trade Finance Corporation, a member of the Islamic Development Bank Group, in partnership with Saudi EXIM Bank and the OPEC Fund for International Development, announced the signing of a landmark $100 million Murabaha Financing Facility in favour 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 fertiliser by the Bangladesh Agricultural Development Corporation from 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 $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 fertilisers.
This facility represents the first ITFC sovereign financing to Bangladesh for fertiliser 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 Adeeb Y. Al Aama, CEO of ITFC.
Aama said, “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 stated, “The $100 million syndicated financing facility represents a pivotal initiative to ensure the uninterrupted supply of fertilisers 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 a 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 fertilisers.
Saad bin Abdulaziz AlKhalb, CEO of Saudi EXIM, stated that the agreement “reflects Saudi Exim’s leading role in driving sustainable economic growth and reinforcing global supply chains”.
AlKhalb said, “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 explained that the OPEC Fund’s commitment to supporting Bangladesh’s development agenda, where agriculture plays a central role, employs nearly half of the workforce.
According to Alkhalifa, 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,” added Alkhalifa. “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 Well-being.
ITFC has provided over $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.
