ITFC to inject $1.4bn into Bangladesh’s energ y sector
Bangladesh’s energy infrastructure is poised for advancement as the Jeddah-based International Islamic Trade Finance Corp. announces injecting $1.4 billion into the country’s economy.
ITFC, a member of the Islamic Development Bank Group, has entered into a strategic agreement with the Bangladesh Petroleum Corp. to make that investment under Islamic trade financing aimed at enhancing the nation’s energy resilience.
This was reported by the Saudi Press Agency; however, no further information was provided about the financing terms.
The financial arrangement signifies a significant step forward in the longstanding partnership between the ITFC and the Bangladesh Petroleum Corp., to bolster the energy security of the South Asian nation.
This development follows a visit in February by Hani Sonbol, CEO of ITFC and acting CEO of the Islamic Corp. for the Development of the Private Sector, to Bangladesh.
This visit marked a significant step in reinforcing the already strong ties between ITFC and Bangladesh, demonstrating a deep commitment to fostering the nation’s economic expansion, the SPA report added.
During his visit, Sonbol met with Bangladesh’s Prime Minister Sheikh Hasina Wajed in Dhaka. The discussions underscored ITFC’s resolve to support Bangladesh’s energy security initiatives, highlighting the recent conclusion of a $2.1 billion financing plan for 2024-2025. Sonbol emphasized ITFC’s role as a key developmental partner to Bangladesh, with more than $22 billion in financing approved to date.
ITFC’s involvement spans a broad spectrum, including trade development programs, technical assistance, and support to local banks, thereby playing a crucial role in meeting the country’s growing demand for Islamic financing.
In further talks with Abul Hassan Ali, finance minister and governor of the Islamic Development Bank for Bangladesh, the discussions focused on enhancing energy security and fostering private sector growth through collaborative efforts.
Additionally, a meeting with Bangladesh’s State Minister of Power, Energy, and Mineral Resource Nasrul Hamid reinforced both parties’ dedication to strengthening the country’s energy infrastructure. This effort builds on ITFC’s significant contributions of over $18 billion in energy and private sector development since its inception in 2008.
FASTFACT
ITFC, a member of the Islamic Development Bank Group, has entered into a strategic agreement with the Bangladesh Petroleum Corp. to make that investment under Islamic trade financing aimed at enhancing the nation’s energy resilience.