Bangladesh Secures $100m ITFC-Saudi EXIM-OPEC Fund Facility for Fertilizers

The International Islamic Trade Finance Corporation (ITFC), in collaboration with the Saudi Export-Import Bank (Saudi EXIM) and the OPEC Fund for International Development (OPEC Fund), has signed a landmark US$100 million Murabaha Financing Facility in favour of the People’s Republic of Bangladesh. The agreement, announced this week, marks a significant milestone in advancing Bangladesh’s food security strategy while strengthening intra-OIC trade cooperation.

Supporting Fertilizer Imports for Food Security

The financing will be used by the Bangladesh Agricultural Development Corporation (BADC) to import fertilizers from the Kingdom of Saudi Arabia. Acting as the executing agency for the Government of Bangladesh, BADC will ensure that the fertilizers reach farmers across the country, directly supporting food production and rural livelihoods.

This transaction represents the first ITFC sovereign financing for fertilizer imports to Bangladesh, expanding the financing portfolio beyond energy and aligning with ITFC’s long-term goal of bolstering agricultural resilience across its member states.

Part of a Broader US$2.75 Billion Agreement

The deal is part of a US$2.75 billion financing plan agreed upon in December 2024 between ITFC and the Government of Bangladesh to cover critical financing needs for the 2025–2026 fiscal year. The larger plan is aimed at securing funding for essential commodities, including petroleum products, liquefied natural gas (LNG), and fertilizers, thereby supporting both energy security and food security.

Agriculture: Backbone of Bangladesh’s Economy

Bangladesh’s agriculture sector continues to play a pivotal role in its economy, contributing around 11% of GDP and employing over one-third of the workforce. The sector underpins rural livelihoods, particularly through rice cultivation, which remains the cornerstone of the nation’s food security.

The financing is projected to benefit nearly 7.9 million people, either directly or indirectly, by ensuring a steady supply of fertilizers that improve agricultural yields and productivity.

Strategic Partner Statements

Eng. Adeeb Y. Al Aama, CEO of ITFC, highlighted the historic nature of the collaboration:

“This initiative represents the first time ITFC has partnered with Saudi EXIM Bank and the OPEC Fund in a syndicated Murabaha facility dedicated to supporting food security in Bangladesh. Through this facility, we reaffirm our commitment to sustainable trade and inclusive development by strengthening intra-OIC cooperation and supporting the vital agricultural sector in Bangladesh.”

Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, Bangladesh, expressed appreciation:

“This US$100 million syndicated financing facility is not merely about financing; it is about safeguarding Bangladesh’s food security and promoting agricultural resilience. It ensures uninterrupted fertilizer supply to our farmers and underscores a shared commitment to sustainable development and economic inclusivity.”

H.E. Eng. Saad bin Abdulaziz AlKhalb, CEO of Saudi EXIM, linked the initiative to Saudi Arabia’s broader economic vision:

“This agreement reflects Saudi Exim’s role in reinforcing global supply chains and promoting our world-class non-oil exports, particularly fertilizers. It aligns with Vision 2030 by diversifying the Kingdom’s economy while contributing to global food security.”

Dr. Abdulhamid Alkhalifa, President of the OPEC Fund, underscored the development impact:

“Bangladesh has made great progress in food security but remains vulnerable to climate change. This joint financing will promote higher productivity and diversification, supporting rural households and aligning with our food security priorities.”

Broader Global Impact and Development Goals

The transaction exemplifies South-South cooperation and aligns with the United Nations Sustainable Development Goals (SDGs), particularly:

• Zero Hunger (SDG 2)

• No Poverty (SDG 1)

• Good Health and Wellbeing (SDG 3)

It also strengthens economic linkages between Saudi Arabia and Bangladesh, reinforcing trade integration across the Islamic world.

ITFC’s Expanding Role in Bangladesh

Since its inception in 2008, ITFC has disbursed over US$20.8 billion in financing to Bangladesh, largely in support of the energy sector. This new financing marks a strategic diversification of ITFC’s engagement, moving beyond energy security into agriculture and food systems. It also reflects Bangladesh’s growing strategic importance in ITFC’s development portfolio, with a dual focus on resilience and sustainable growth.

A Step Toward Sustainable Growth

By ensuring access to fertilizers and strengthening agricultural productivity, this initiative is expected to improve food security, empower rural farmers, and stabilize Bangladesh’s agricultural base. At the same time, it enhances Saudi Arabia’s non-oil export footprint and deepens multilateral cooperation across OIC member states.