ITFC finances $100m to boost Maldives energy sector

The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB), signed with the State Trading Organization (STO), a government owned company in the Maldives, a syndicated Murabaha financing agreement for $100 million.

The Murabaha financing will secure more than 75 percent of the purchase of petroleum product requirements of the Maldives to help boost the economy.

The agreement was signed by Nazeem Noordali, ITFC COO, and Ahmed Shaheer, managing director, STO, in the presence of Mohamed Mihad, Chief Financial Officer, STO, under the auspices of Maldives Finance Minister Ahmed Munawar.

Highlighting the importance of this partnership, Noordali highlighted the importance of maintaining oil price stability in the Maldives

“Securing the energy sector is not only critical for the economic growth of the Maldives, but it is essential for households and public administration that would serve all economic sectors,” he said.

Praising the level of cooperation between STO and ITFC, Shaheer said: “With the government embarking on infrastructure development projects aiming to strengthen and diversify its economy, this financing will serve as the building block for the future growth of the Maldives.”

This deal comes in line with ITFC’s strategy of focusing on key sectors for member countries and supporting intra-OIC trade. Also, leveraging IsDB Group and external partnership.

ITFC has provided $145 million of financing in the Maldives since its inception in 2008.

The event saw more than 100 participants interacting with experts, entrepreneurs and coaches.

Officials pose for a photo at the agreement signing ceremony.