Prime Bank Limited has signed a murabaha agreement with the International Islamic Trade Finance Corporation (ITFC) – a member organisation of the Islamic Development Bank (IsDB).
The arrangement will support Prime Bank's growing trade financing for the small and medium-sized enterprise (SME) and corporate segment, said a media statement issued by the bank on Tuesday.
Under this agreement, ITFC will provide a trade financing facility against Letters of Credit (LC) issued by Prime Bank, and this is the first time the bank has availed of the trade financing facility from ITFC under a murabaha agreement.
Prime Bank's Acting Managing Director and CEO Faisal Rahman as well as ITFC's CEO Hani Salem Sonbol led the virtual agreement signing ceremony on behalf of their respective organisations, on Tuesday.
ITFC's Chief Operating Officer Nazeem Noordali, its General Manager for Trade Finance Abdihamid Aweis Abu, Prime Bank's SEVP for Transaction Banking and Structured Finance Shams A Muhaimin, its EVP and Head of International Division Hassanul Zahed, and its Vice President Masud Uddin Ahmed, among others, were present on the occasion.
"We are proud to be partnering with Prime Bank Limited and provide them with financing to support SME growth and the import of raw materials in Bangladesh," said Hani Salem Sonbol.
"Private sector development is key for the country's economic growth and supporting SMEs for the access to financing is a central tenet of the ITFC strategy. This is because we are contributing to the development of intra-OIC trade flows, leading to socio-economic development in our member countries," he added.
"We are very delighted to conclude the murabaha trade financing agreement with the International Islamic Trade Finance Corporation which will expand our trade finance capacity," said Faisal Rahman, acting managing director of Prime Bank.
"The support from ITFC has strategic value and significance as it comes at a time when businesses are striving to make a comeback from the fallout of the prevailing pandemic. The arrangement will be greatly beneficial for our SME and corporate segments," he added.
Prime Bank Limited is one of the fastest growing banks in Bangladesh with consistent financial performance since its inception in 1995. The bank remains at the forefront of innovative solutions in trade finance.
ITFC was established with the primary goal of advancing trade among Organisation of Islamic Cooperation (OIC) member countries – which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world.
Commencing operations in January 2008, ITFC has provided more than $51 billion in financing to OIC member countries, making it the leading provider of trade solutions for its member countries' needs.