International Islamic Trade Finance Corporation (ITFC) signs a US$90 million Master Murabaha Agreement in favor of the Republic of Djibouti
JEDDAH, Kingdom of Saudi Arabia, January 29, 2024 -- The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, signed a US$90 Million Master Murabaha Agreement in favor of the Republic of Djibouti, with the International Hydrocarbons Company of Djibouti (SIHD) as the executing agency.
The signing took place between HE. Ilyas Moussa Dawaleh, Minister of Economy & Finance, in charge of Industry, and Eng. Hani Salem Sonbol, CEO of ITFC. The facility aims to support SIHD's mandate of securing energy supply through the importation of petroleum products that is essential for electricity generation to boost all the sectors of the economy. This initiative fosters intra-OIC trade, as the petroleum products will be sourced mainly from other OIC member countries.
The ITFC interventions in Djibouti reflect the commitment to supporting Djibouti's economy, starting with the energy sector and extending its positive impact to vital areas like services, manufacturing, and agriculture. This operation underlines ITFC's commitment to fulfilling UN SDG 7, 'Energy for All'."
Commenting on the signing of the agreement, Eng. Hani Salem Sonbol, CEO of ITFC stated: "This financing will promote positive impact on the level of human and economic development and is expected to further strengthen the strategic cooperation between ITFC and Djibouti in the energy sector."
Over the years, ITFC and the Republic of Djibouti have enjoyed a good and longstanding relationship with a total of US$1.6 billion approved by the Corporation in favor of the country, with 33 operations targeting the energy and health sectors. The Master Murabaha Agreement signing also aligns with the US$600 million 3-year Framework Agreement signed in May 2023 between ITFC and Djibouti.