International Islamic Trade Finance Corporation (ITFC) has increased its financing facility to State Trade Organisation (STO).
ITFC is a member of the Islamic Development Bank Group (IsDB). The financing facility was extended at the annual general meeting (AGM) of the IsDB. On the sidelines of the AGM, an agreement was signed renewing Murabaha Trade Financing Agreement for USD175 million to support the import of essential commodities with STO.
The financing facility will support the procurement of essential commodities, including petroleum products, staple food and medicine and medical equipment. The facility agreement was signed by the Chief Executive Officer (CEO) of ITFC Hani Salem Sonbol, and the Chief Executive Officer (CEO) and Managing Director of STO Hussain Amr Mohamed Rasheed. The original Murabaha Trade Facility was signed between ITFC and the Maldives in October 2019.
The IsDB has already been providing financing to the company under the finance facility and the finances increase every year, according to STO.