Prime Bank, ITFC sign Master Murabaha Agreement

Prime Bank has signed a Master Murabaha Agreement with International Islamic Trade Finance Corporation (ITFC), a member organisation of Islamic Development Bank (IsDB). 

The arrangement will support the growing trade business of Prime Bank for SME and Corporate segment, reads a press release. 

Under this agreement, ITFC will provide trade facilities against Letter of Credit issued by Prime Bank. This is a 3-year facility extended to Prime Bank, following a previous 1-year trade facility from ITFC under a Murabaha Agreement. 

Prime Bank Managing Director and CEO Hassan O Rashid and ITFC COO Nazeem Noordali led the agreement signing ceremony on behalf of their respective organisations. 

ITFC General Manager of Trade Finance Abdihamid Aweis Abu, Prime Bank Additional Managing Director Faisal Rahman, and DMD of Transaction Banking, Financial Institutions & Debt Capital Market Shams A Muhaimin were present on the occasion along with other senior executives from both parties.

"We are proud to partner with Prime Bank Limited and provide trade facility to the bank to support SME growth and the import of raw materials in Bangladesh," said Nazeem Noordali.

"Private sector development is key for the country's economic growth and supporting SMEs to gain access to trade facilities is a central tenet of the ITFC strategy, which also helps SMEs to participate in global value chains," he added.

"We are very delighted to conclude the 3-year Master Murabaha Trade Agreement with International Islamic Trade Finance Corporation which will expand our capacity to conduct cross-border trade business," said Hassan O Rashid.

"The support from ITFC has strategic value and significance as it comes at a time when businesses are witnessing challenges as a result of global economic turmoil. This will strengthen our existing bilateral relationship with ITFC and other member organisations of Islamic Development Bank," he added.