ITFC, Saudi EXIM, and OPEC Fund provide $100 million fertilizer financing to Bangladesh
The International Islamic Trade Finance Corporation (ITFC), in partnership with Saudi EXIM Bank and the OPEC Fund for International Development, announced a $100 million Murabaha Financing Facility for the People’s Republic of Bangladesh. The facility will fund the importation of fertilizer by the Bangladesh Agricultural Development Corporation (BADC), supporting the government’s national food security strategy and enhancing intra-OIC trade cooperation.
This financing forms part of a broader $2.75 billion plan agreed in December 2024 to cover Bangladesh’s 2025–2026 fiscal year needs, including petroleum products, LNG, and fertilizers. It represents the first ITFC sovereign financing to Bangladesh for fertilizer imports, aligning with the organization’s strategic goal of supporting agricultural resilience in member countries.
Financing expected to benefit millions and strengthen agriculture
Bangladesh’s agriculture sector contributes 11 percent to GDP and employs over one-third of the national workforce. The Murabaha facility is expected to benefit approximately 7.9 million people engaged directly or indirectly in agriculture, particularly rice farming.
“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 Eng. Adeeb Y. Al Aama, CEO of ITFC. “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, Bangladesh, expressed appreciation for the support, noting that the facility safeguards food security, promotes agricultural resilience, and supports millions of rural households dependent on farming.
Partners highlight global trade and development impact
Saudi EXIM Bank emphasized the role of the financing in advancing global trade and supporting food security, particularly through the Kingdom’s fertilizer exports. H.E. Eng. Saad bin Abdulaziz AlKhalb, CEO of Saudi EXIM, said the agreement reflects the bank’s commitment to sustainable economic growth, market access, and trade links between Saudi Arabia and global partners.
OPEC Fund President Dr. Abdulhamid Alkhalifa highlighted the importance of agriculture to Bangladesh’s economy and food security, noting that the financing promotes productivity, diversification, and resilience in the face of climate change.
The transaction aligns with South-South cooperation and contributes to several UN Sustainable Development Goals, including Zero Hunger, No Poverty, and Good Health and Wellbeing. Since its inception in 2008, ITFC has provided over $20.8 billion in financing to Bangladesh, primarily in the energy sector, and this initiative marks a strategic diversification into agriculture and food security.
