BM Desk:

Citibank Bangladesh has received a significant boost to its trade finance capabilities after the Islamic Trade Finance Corporation (ITFC) increased its Murabaha trade finance facility to $45 million under a syndicate arrangement. This marks the highest ever trade finance facility extended by ITFC to a private bank.

ITFC, a subsidiary of the Islamic Development Bank, provides trade finance solutions that comply with Islamic banking principles. The increased facility will enable Citibank to better serve its customers by financing the import of essential raw materials and products, managing foreign trade more efficiently, and offering its clients longer-term payment options.

The agreement was signed at Citibank’s head office by Masrur Arefin, Managing Director and CEO of Citibank Bangladesh, and Najib Nurdali, COO of ITFC. 

Sheikh Mohammad Maruf and Mohammad Mahbubur Rahman, two additional managing directors of Citibank, along with Hasan Sharif Ahmed, Head of Financial Institutions Division, and Abdul Alim, ITFC’s Asia and Middle East Division Manager, South and Southeast Asia, were also present at the ceremony.

Masrur Arefin expressed gratitude for ITFC’s support, highlighting the role of the trade finance facility in assisting private sector importers with financing essential imports and managing foreign exchange liquidity. 

Najib Nurdali, in turn, emphasized ITFC’s commitment to fostering trade and economic cooperation among member countries of the Organization of Islamic Cooperation (OIC), and specifically its focus on supporting the development of small and medium-sized enterprises (SMEs) in Bangladesh through financing solutions.

This is not the first time Citibank has received trade finance support from ITFC. The partnership has been in place since 2019, with ITFC playing a crucial role in promoting trade and economic collaboration within the OIC region. 

The significant increase in the trade finance facility demonstrates the trust and confidence ITFC has in Citibank’s capabilities and its commitment to supporting Bangladesh’s economic growth.

This news is a positive development for Citibank Bangladesh and further strengthens its position as a leading provider of trade finance solutions in the country. The increased trade finance facility will enable the bank to better serve its customers and contribute to the overall growth of the economy.