The City Bank has entered into a $15 million trade finance deal with ITFC, the trade financing arm of Islamic Development Bank (IsDB), to support the private sector enterprises in Bangladesh.
According to a press release issued by The City Bank, entrepreneurs can avail credit from the special fund under Islamic banking window to import raw material from international markets.
Jeddah-based International Islamic Trade Finance Corporation (ITFC) is playing a key role to enhance trade and economic cooperation among the member countries of Organisation of Islamic Cooperation (OIC).
City Bank is the latest partner institution to work with ITFC as it expands its financing outreach to private sector through local banks in Bangladesh.
Sheikh Mohammad Maroof, additional managing director of City Bank, said, "Murabaha financing facility will enable us to provide better value to our importing clients through extensive links and support of ITFC and IsDB."
"We take a very keen interest in the private sector, which is a major driver in the economy of Bangladesh, and we look forward to seeing the new partnership make a lasting contribution to private sector development and socio-economic growth in Bangladesh," he added.
Commenting on the Murabaha Financing Facility, ITFC CEO Hani Salem Sonbol said, "We are proud to join hands with City Bank Bangladesh in supporting SME growth and the import of raw materials in Bangladesh."
"A central tenet of the ITFC strategy is to provide financing to local partner financial institutions like City Bank to facilitate SME access to financing that is key for the country's economic growth and their ability to participate in global value chains. As such, it is contributing to the development of intra-OIC trade flows and ultimately leading to socio-economic development in our member countries," he added.
Supporting the SMEs as they emerge out from the pandemic is ever more critical now as financial resources of OIC Member Countries are stretched to meet the urgent medical and staple food supplies, according to the official.
The financing and grants being rolled out by ITFC, as part of the IsDB's Covid-19 response strategy, are providing life-saving support through the provision of medical supplies, staple food and fertilizer for agricultural production to OIC countries including Egypt, Kyrgyzstan, the Maldives and Senegal.