The International Islamic Trade Finance Corporation (ITFC), in partnership with Saudi EXIM Bank and the OPEC Fund for International Development, has signed a landmark US$100 million Murabaha financing facility to support Bangladesh’s fertilizer imports.
The deal, announced this week, will fund the supply of fertilizers from Saudi Arabia to the Bangladesh Agricultural Development Corporation (BADC), which will execute the operation on behalf of the government. Officials say the move is central to Bangladesh’s strategy of safeguarding food security and strengthening resilience in its agriculture sector, which contributes 11 percent to GDP and employs more than a third of the national workforce.
The financing forms part of a broader US$2.75 billion package agreed between ITFC and Bangladesh in December 2024 to support the country’s 2025–2026 fiscal year energy and food needs, including petroleum, LNG, and fertilizers. It is also the first sovereign ITFC facility dedicated to fertilizer imports, diversifying its support beyond energy into agriculture.
“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. He added that the deal underscores intra-OIC cooperation and inclusive development by reinforcing trade flows among member countries.
Bangladesh’s finance ministry welcomed the agreement as a timely intervention. Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, described it as “a pivotal initiative to ensure uninterrupted fertilizer supply to our farmers,” noting that it would safeguard rural livelihoods and promote resilience in rice production.
Saudi EXIM’s CEO, Eng. Saad bin Abdulaziz AlKhalb, said the agreement also reflects the Kingdom’s Vision 2030 goal of diversifying its economy by boosting non-oil exports. “This deal strengthens trade links between Saudi Arabia and key global partners while reinforcing global supply chains,” he said.
The OPEC Fund emphasized the transaction’s role in advancing food security and climate resilience in Bangladesh. President Dr. Abdulhamid Alkhalifa highlighted its alignment with the Fund’s priorities, particularly supporting agriculture, which employs nearly half of the country’s workforce.
Since its inception in 2008, ITFC has disbursed more than US$20.8 billion to Bangladesh, mainly for energy. With this facility, the corporation signals a strategic expansion into agriculture and food security, an area of growing importance as Bangladesh seeks to balance development with resilience.
The financing also supports several UN Sustainable Development Goals, including Zero Hunger and No Poverty, and represents a wider push for South-South cooperation among OIC member states.
