ITFC signs two landmark agreements to support commodities sector in Maldives

A US$ 189 million financing was signed by Mr. Husen Amru Mohamed Rashad, Chief Executive Officer and Managing Director, State Trading Organization plc (STO), Republic of Maldives and Eng. Hani Salem Sonbol, Chief Executive Officer, ITFC.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank Group (IsDB), signed two landmark agreements to support the essential commodities sector in the Republic of Maldives witnessed by H.E. Ibrahim Ameer, Minister of Finance and IsDB Governor, Maldives, during an official visit of Eng. Hani Salem Sonbol, Chief Executive Officer, ITFC.

A US$ 189 million financing was signed by Mr. Husen Amru Mohamed Rashad, Chief Executive Officer and Managing Director, State Trading Organization plc (STO), Republic of Maldives and Eng. Hani Salem Sonbol, Chief Executive Officer, ITFC. This financing which is a renewal and increase of an existing Murabaha trade facility will provide support for the procurement of petroleum products, staple food, medicine, and medical equipment to aid in the country’s economic recovery from the COVID-19 pandemic.

The second agreement is a Memorandum of Understanding (MOU) and signed by Mr. Husen Amru Mohamed Rashad, Chairman of Maldives Industrial Fisheries Company Ltd. (MIFCO) and Eng. Hani Salem Sonbol, CEO ITFC, to support MIFCO with the relevant Trade-Related Technical Assistance. This MOU is aimed at enhancing the competitiveness of MIFCO and it access to global markets. The fishing industry in the Maldives is the nation’s second-biggest industry after tourism, employing half of the country’s workforce and providing a livelihood for the population.

 

Speaking during the ceremony, ITFC CEO, Eng. Sonbol commented: “ITFC is extremely pleased to sign its largest syndicated trade finance agreement with STO to finance the import of strategic commodities to support the recovery of the economy from the pandemic. Apart from the support extended on the trade financing front, the MoU with MIFCO is also a major milestone given the fishing sector’s strategic importance to the economy.  Capacity building and technical assistance initiatives offered to MIFCO is expected to boost the fisheries sector’s competitiveness.  We therefore look forward to continuing our trade finance and development support of the Maldives.” 

Mr. Husen Amru Mohamed Rashad, Chief Executive Officer and Managing Director, State Trading Organization plc, Republic of Maldives also reiterated that the successful long-standing partnership and cooperation between Maldives and ITFC, considering the support it provides to procurement of essential commodities. He also stressed that the MOU signed to support capacity development of MIFCO was an important step, which will directly benefit growth of fisheries sector.

 

STO CEO, thanked ITFC for its continued support, highlighting that the renewal of enhanced facility comes at a critical time as global commodity prices at highest due to ongoing war in Russia-Ukraine and country face the economic recovery from pandemic. The facility will enable to ensure energy, food and medicine security in the country, while supporting economic stability and growth in key sectors.

(With Inputs from APO)