In a significant step toward enhancing food security, the Government of Bangladesh has signed two major financing agreements with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group.
The deals, signed in Jeddah on Wednesday, will support the import of fertilizers into Bangladesh with an initial financing commitment of $100 million, according to a release from the Economic Relations Division (ERD).
The agreements — a Master Murabaha Financing Agreement and a Syndicated Murabaha Financing Facility — mark the first time ITFC funding, traditionally used for oil imports by Bangladesh Petroleum Corporation (BPC), has been extended to the fertilizer sector.
The move is seen as a strategic effort to bolster agricultural productivity and ensure long-term food security for the nation.
A high-level three-member delegation from Bangladesh attended the signing ceremony. The team was led by Md. Shahriar Kader Siddiky, ERD Secretary, and included Md. Emdad Ullah Mian, secretary of the Ministry of Agriculture, and Md. Kabir Ahmed, deputy governor of Bangladesh Bank.
Siddiky signed the Master Murabaha Financing Agreement on behalf of Bangladesh, while Mian signed the Syndicated Murabaha Financing Facility.
Speaking at the event, Siddiky emphasized the critical role of ITFC in supporting Bangladesh’s development goals. He noted the importance of extending trade financing to new sectors like agriculture and expressed optimism about ITFC’s continued partnership in enhancing the country’s energy and food security.
The agreements underscore Bangladesh’s ongoing efforts to strengthen international partnerships and secure essential resources needed for sustainable development.