Jeddah, Kingdom of Saudi Arabia – The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed a US$ 60 million Murabaha Agreement with the Government of Burkina Faso and Sonabhy as the Executing Agency for the import of petroleum products. The Agreement was signed by Mr. Gambetta Aboubakar Nacro, Managing Director, SONABHY (Société Nationale Burkinabè des Hydraucarbures) and Eng. Hani Salem Sonbol, Acting CEO of ITFC.
This agreement aims at supporting the economy of Burkina Faso by ensuring a better supply of refined petroleum products from reliable sources for the national importer company. This operation is in line with the Framework Agreement signed between ITFC and the Government of Burkina Faso in June 2014, which outlined energy as one of the key strategic areas of cooperation.
Commenting on the signing, Eng. Hani Salem Sonbol said “we are aiming to strengthen our relationship with the Government of Burkina Faso, this new operation is seeking to consolidate ITFC’s financing package and offer financing for the energy sector, leveraging on ITFC’s ability to mobilize resources from the market.”
Sonabhy has the monopoly of importing petroleum products into Burkina Faso and this new financing will help the country cover a bigger portion of its imports. Mr. Gambetta Aboubakar Nacro added that “this cooperation with ITFC and IDB Group in supporting the energy sector significantly impacts the economy of the country, imported petroleum products being a substantial source of power for the country and therefore vital for its economic development. This will allow SONABHY to keep ensuring regular supply of hydrocarbons to the country, in these times of cash-flow constraints.”
ITFC and IDB are building a strong relationship with Sonabhy dating back to 2013 when the first Trade Finance operation of US$30 million was approved.
The International Islamic Trade Finance Corporation (ITFC) is an autonomous entity within the Islamic Development Bank (IDB) Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world. ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IDB Group. It commenced operations in January 2008. The consolidation of the IDB Group’s trade finance activities under a single umbrella increased the Corporation’s efficiency in service delivery by enabling rapid response to customer needs in a market-driven business environment.
As a leader in Shari’ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. Its primary focus is to encourage intra-trade among OIC (Organization of Islamic Cooperation) member countries. As a member of the IDB Group, ITFC has unique access to governments in its member countries and works as a facilitator to mobilize private and public resources towards achieving its objectives of fostering economic development through trade. The Corporation helps businesses in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools in order to help them compete successfully in the global market.
Operating to world-class standards, the ITFC’s mission is clear from its mandate to be a catalyst for the development of trade among OIC member countries and with the rest of the world. ITFC aspires to be a recognized provider of trade solutions for the OIC Member Countries’ needs; in order to fulfill its brand promise of ‘Advancing Trade & Improving Lives”.