ITFC, Saudi EXIM, OPEC Fund seal $100m deal to boost Bangladesh fertilizer imports

The International Islamic Trade Finance Corporation (ITFC), Saudi Export-Import Bank (Saudi EXIM), and the OPEC Fund for International Development have signed a landmark US$100 million syndicated Murabaha financing facility to support Bangladesh’s fertilizer imports.

The facility, announced on Thursday, is the first of its kind extended by ITFC to Bangladesh for fertilizer financing. It will enable the Bangladesh Agricultural Development Corporation (BADC) to import fertilizers from Saudi Arabia on behalf of the government, strengthening the country’s food security agenda.

The deal is part of a US$2.75 billion financing package agreed in December 2024 between ITFC and Bangladesh to meet fiscal requirements for 2025–2026. It also covers the importation of petroleum products and LNG to bolster the country’s energy and food security.

ITFC Chief Executive Officer, Eng. Adeeb Y. Al Aama, described the initiative as a milestone in intra-OIC trade cooperation.

“This is the first syndicated Murabaha facility with Saudi EXIM and the OPEC Fund dedicated to Bangladesh’s food security,” he said. “It reaffirms our commitment to sustainable trade, inclusive development, and strengthening the agricultural sector in our member countries.”

Bangladesh’s Secretary of Economic Relations Division, Md. Shahriar Kader Siddiky, hailed the financing as pivotal for sustaining the nation’s farming sector.

“This is not just about financing; it is about safeguarding food security and rural livelihoods for millions of households,” he said.

Saudi EXIM CEO, H.E. Eng. Saad bin Abdulaziz AlKhalb, noted the agreement advances Saudi Arabia’s non-oil export agenda under Vision 2030.

“We are proud to expand market access for Saudi fertilizers while reinforcing global supply chains and fostering economic integration,” he said.

OPEC Fund President, Dr. Abdulhamid Alkhalifa, stressed that the loan supports Bangladesh’s climate-vulnerable agriculture sector.

“It aligns with our priorities on food security and sustainable development while strengthening South-South cooperation,” he said.

Agriculture contributes about 11% of Bangladesh’s GDP and employs over one-third of the workforce. Authorities expect the financing to benefit an estimated 7.9 million people, particularly rice farmers central to the country’s food system.

Since its inception in 2008, ITFC has provided more than US$20.8 billion in financing to Bangladesh, mainly in the energy sector. This latest initiative represents a strategic diversification into agriculture and food security.