ITFC and MTB PLC sign Murabaha agreement to boost trade finance for SME
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, and Mutual Trust Bank PLC (MTB) signed a Master Murabaha Agreement to strengthen trade finance support for Small and Medium Enterprises (SMEs) and the private sector in Bangladesh.
The agreement will enable ITFC to provide trade financing facilities against Letters of Credit (LCs) issued by Mutual Trust Bank PLC, enhancing the bank's capacity to support cross-border trade and contribute to the growth of SMEs. This collaboration underscores both institutions' commitment to fostering economic development and private sector growth in Bangladesh.
The signing ceremony was held in Dhaka and attended by senior executives from both organisations. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank PLC, and Nazeem Noordali, Officer-in-Charge and CEO of ITFC, led the signing on behalf of their respective institutions.
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Nazeem Noordali emphasised the strategic importance of the partnership, stating, "We are proud to partner with Mutual Trust Bank to provide trade financing facilities that will support SME growth and the import of essential commodities in Bangladesh. Private sector development is a cornerstone of the country's economic progress, and enabling SMEs to access trade finance is central to ITFC's strategy. This initiative will also help SMEs integrate into global value chains, fostering sustainable economic growth."
Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank PLC expressed his enthusiasm for the agreement, saying, "The partnership with ITFC under this trade finance facility agreement is significant, especially given the current economic challenges faced by Bangladesh. This collaboration will enhance MTB's reputation among correspondent banks globally, highlighting its resilience, commitment to best practices, and dedication to sustainable growth. Furthermore, it will provide our SME customers with greater access to financing and help facilitate the import of essential raw materials and soft commodities".
The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank PLC to drive economic growth by supporting SMEs and the private sector. By facilitating access to trade finance, the partnership aims to empower businesses, create employment opportunities, and contribute to Bangladesh's sustainable development.
