The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a US$90 Million Master Murabaha Agreement with Djibouti for energy supply through the importation of petroleum products.
International Hydrocarbons Company of Djibouti (SIHD) will act as as the executing agency.
The signing ceremony was attended by 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 is an impetus in the intra-OIC trade, as the petroleum products will be sourced mainly from other OIC member countries.
“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,” said Eng. Hani Salem Sonbol, CEO of ITFC.
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.
ITFC started operation in 2008 and has provided US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs.