Prime Bank, ITFC ink US$15m Murabaha agreement
News Desk || risingbd.com
Prime Bank signed a Murabaha agreement worth US$15 million with International Islamic Trade Finance Corporation (ITFC) - a member organization of Islamic Development Bank (IsDB), according to a press release issued on Tuesday (January 26).
The arrangement will support growing trade finance business of Prime Bank for SME and Corporate segment. Under this agreement, ITFC will provide trade financing facility against Letter of Credit issued by Prime Bank.
This is the first time Prime Bank is availing the trade financing facility from ITFC under a Murabaha agreement.
Prime Bank’s acting Managing Director (MD) and Chief Executive Officer (CEO) Faisal Rahman and ITFC’s CEO Eng. Hani Salem Sonbol led the agreement signing ceremony on behalf of their respective organizations.
ITFC’s Chief Operating Officer Nazeem Noordali, General Manager- Trade Finance Abdihamid Aweis Abu, and Prime Bank’s SEVP – Transaction Banking & Structured Finance Shams A Muhaimin, EVP & Head of International Division Hassanul Zahed, Vice President Masud Uddin Ahmed were present along with other senior executives from both sides in the occasion.
“We are proud to partner with Prime Bank Limited and provide financing to the bank to support SME growth and the import of raw materials in Bangladesh. Private sector development is a key to the country’s economic growth and supporting SMEs gain access to financing is a central tenet of the ITFC strategy, which also helps SMEs to participate in global value chains. As such, we are contributing to the development of intra-OIC trade flows and ultimately leading to socio-economic development in our member countries.” said Hani Salem Sonbol, CEO of ITFC.
“We are very delighted to conclude the Murabaha Trade Financing agreement with International Islamic Trade Finance Corporation which will expand our trade finance capacity. 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. This unique solution will strengthen the existing bilateral relationship with ITFC and other member organizations of Islamic Development Bank.” said Faisal Rahman, acting MD and CEO of Prime Bank.