ITFC and Mutual Trust Bank Partner to Strengthen Trade Finance for SMEs in Bangladesh

The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, and Mutual Trust Bank PLC (MTB) have signed a Master Murabaha Agreement to enhance trade finance support for Small and Medium Enterprises (SMEs) and the private sector in Bangladesh. The partnership will enable ITFC to provide trade financing facilities against Letters of Credit (LCs) issued by Mutual Trust Bank, thereby strengthening the bank’s capacity to support cross-border trade and contribute to SME growth in the country.

Strengthening Trade Finance for Economic Development

The agreement is a significant step toward fostering economic development in Bangladesh, underscoring the commitment of both institutions to empowering businesses and driving sustainable private sector growth. Through this collaboration, SMEs will gain improved access to trade financing, which is crucial for their participation in international markets and supply chains.

The signing ceremony took place in Dhaka, attended by senior executives from both organizations. Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, and Mr. Nazeem Noordali, Officer-in-Charge, CEO of ITFC, led the signing on behalf of their respective institutions.

Leadership Perspectives on the Strategic Collaboration

Mr. Nazeem Noordali emphasized the strategic importance of the partnership, stating, “We are proud to partner with Mutual Trust Bank to provide trade financing facilities that will support SME growth and the import of essential commodities in Bangladesh. Private sector development is a cornerstone of the country’s economic progress, and enabling SMEs to access trade finance is central to ITFC’s strategy. This initiative will also help SMEs integrate into global value chains, fostering sustainable economic growth.”

Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, expressed his enthusiasm for the agreement, noting, “The partnership with ITFC under this trade finance facility agreement is significant, especially given the current economic challenges faced by Bangladesh. This collaboration will enhance MTB's reputation among correspondent banks globally, highlighting its resilience, commitment to best practices, and dedication to sustainable growth. Furthermore, it will provide our SME customers with greater access to financing and help facilitate the import of essential raw materials and soft commodities.”

Enabling SMEs and Private Sector Growth

The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector. By facilitating access to trade finance, the partnership aims to empower businesses, create employment opportunities, and contribute to the sustainable development of Bangladesh.

The collaboration is expected to have a lasting positive impact on the trade finance landscape, reinforcing the resilience of SMEs and positioning Bangladesh’s private sector as a key player in the global economy.