ITFC will provide a trade financing facility against Letter of Credit issued by Prime Bank. The arrangement will support the growing trade finance business of Prime Bank for the SME and Corporate segment
Prime Bank has signed a Murabaha Agreement with International Islamic Trade Finance Corporation (ITFC) - a member organisation of Islamic Development Bank (IsDB).
Under this agreement, ITFC will provide a trade financing facility against Letter of Credit issued by Prime Bank. The arrangement will support the growing trade finance business of Prime Bank for the SME and Corporate segment, states a press release.
Prime Bank's Acting Managing Director and CEO Faisal Rahman and ITFC's CEO Hani Salem Sonbol led the agreement signing ceremony on behalf of respective organisations held on 26 January.
"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 key for the country's economic growth and supporting SMEs to 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.
Faisal Rahman, CEO of Prime Bank said, "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 organisations of Islamic Development Bank."
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 parties on the occasion.