Bangladesh Secures $2.75 Billion Financing from ITFC to Boost Energy and Agriculture Sectors

Speaking at the signing ceremony, Mr. Noordali emphasized ITFC’s commitment to supporting Bangladesh’s development goals.

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed an annual financing agreement with the Government of Bangladesh for $2.75 billion to strengthen the country’s energy and agriculture sectors. This financing will cover the fiscal year from July 2025 to June 2026 and aims to ensure the uninterrupted import of critical resources.

The agreement will facilitate:

• Petroleum Products: Imports managed by the Bangladesh Petroleum Corporation (BPC).
• Liquified Natural Gas (LNG): Procured by Bangladesh Oil, Gas & Mineral Resources Corporation (Petrobangla).
• Fertilizers: Supplied through the Bangladesh Agricultural Development Corporation (BADC) to support agricultural productivity.

These imports are vital for addressing Bangladesh’s growing demand for energy and ensuring food security through agricultural development.

Strategic Partnership

The agreement was signed at the ITFC headquarters in Jeddah during an official visit by a high-level Bangladeshi delegation. Mr. Nazeem Noordali, Chief Operating Officer of ITFC, and Mr. Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD) of Bangladesh’s Ministry of Finance and Member of the Board of Executive Directors of IsDB, signed the agreement on behalf of their respective organizations.

Speaking at the signing ceremony, Mr. Noordali emphasized ITFC’s commitment to supporting Bangladesh’s development goals. He highlighted the longstanding partnership, noting that ITFC has provided over $19 billion in financing to Bangladesh since its inception, reflecting the mutual trust and cooperation between the two parties.

Strengthening Energy and Agriculture

This financing plan will bolster Bangladesh’s efforts to meet its growing energy needs, driven by industrialization and urbanization. It will also support the agriculture sector, ensuring the timely availability of fertilizers to enhance crop yields and food security. By addressing critical supply chain needs, the agreement aims to stabilize the energy and food sectors and contribute to the country’s overall economic growth.

Broader Implications

This funding aligns with ITFC’s mission to promote trade and development in member countries. For Bangladesh, it represents a vital step in achieving its Vision 2041 objectives, which include transitioning to a high-income country with sustainable and inclusive growth. The financing also supports Bangladesh's commitment to the United Nations Sustainable Development Goals (SDGs), particularly those related to affordable energy (SDG 7) and food security (SDG 2).

Looking Ahead

With a history of successful collaborations, this agreement reinforces the strategic partnership between Bangladesh and ITFC. The infusion of $2.75 billion will help mitigate global supply chain challenges and ensure steady progress in critical sectors. By securing essential resources, Bangladesh is better positioned to navigate economic challenges and maintain its trajectory of growth and development.

This landmark agreement highlights ITFC’s ongoing role as a trusted partner in advancing Bangladesh’s economic priorities while promoting regional stability and cooperation.