City Bank Hosts ITFC Delegation to Explore Trade Finance Cooperation in Bangladesh

🤝 Dhaka, Bangladesh — City Bank PLC recently hosted a senior delegation from the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, at its head office in Dhaka — marking an important step toward expanding Shariah-compliant trade finance solutions in Bangladesh.

📊 The ITFC delegation was led by H.E. Eng. Adeeb Yousuf Al Aama, Chief Executive Officer, along with other senior delegates from ITFC. The City Bank delegation was led by Mashrur Arefin, Managing Director & CEO, along with other senior members of the Bank’s management team.

💰 Existing Partnership: $40 Million Murabaha Facility

📊 City Bank has maintained a strong and fruitful relationship with ITFC since 2019. Currently, the Bank has a:

• 💰 USD 40 million Murabaha financing facility with ITFC
• 💰 USD 10 million syndicated facility (part of the $40M)
• 📊 Supporting trade finance activities and facilitating international trade

📊 The Murabaha financing structure is a Shariah-compliant trade finance mechanism where the financier purchases goods and sells them to the client at a marked-up price, with payment typically deferred — enabling Islamic banks to provide trade finance without charging conventional interest.

🤝 Meeting Discussion Areas

📊 During the meeting, both sides reaffirmed the strong strategic partnership between City Bank PLC and ITFC and explored potential areas for further collaboration:

👕 Export Financing:

• 💰 Supporting Bangladesh’s export-oriented industries (RMG, pharmaceuticals, leather, agro-processing)
• 💰 Pre-export financing for suppliers
• 💰 Post-shipment trade finance
• 💰 Letter of credit confirmation and refinancing

🌿 Green Financing:

• 🌿 Financing for renewable energy projects
• 🌿 Green factory certification support
• 🌿 Sustainable supply chain financing
• 🌿 ESG-compliant trade finance instruments

🌏 Intra-OIC Trade Expansion:

• 🌏 Expanding trade transactions with OIC member countries
• 🌏 Trade finance for Bangladesh-Gulf trade corridors
• 🌏 Remittance-linked trade finance products
• 🌏 Shariah-compliant trade instruments

🌏 Strategic Significance

📊 This high-level meeting marks an important step toward:

• 💰 Expanding Shariah-compliant trade finance solutions
• 💼 Supporting Bangladesh’s key trade sectors
• 🤝 Strengthening international trade linkages
• 📈 Contributing to the country’s broader economic growth

🏛 ITFC: Islamic Development Bank Group Member

📊 The International Islamic Trade Finance Corporation (ITFC) is a key entity within the IsDB Group:

• 🌏 Established: 2008
• 🌏 Headquarters: Jeddah, Saudi Arabia
• 🌏 Mandate: Trade finance for OIC member countries
• 💰 Focus: Intra-OIC trade development
• 💰 Instruments: Murabaha, Salam, Istisna’a
• 👥 CEO: Eng. Adeeb Yousuf Al Aama

🏦 City Bank PLC: Bangladesh Banking Leader

📊 City Bank is one of Bangladesh’s leading private commercial banks:

• 📅 Established: 1983
• 👥 MD & CEO: Mashrur Arefin (also Chairman, ABB)
• 💰 Islamic banking window: City Bank has Shariah-compliant banking operations
• 📱 City Bank Platinum: premium credit card brand
• 🌐 International presence: correspondent banking network globally
• 📊 Trade finance: significant player in LC, trade finance and FX

💰 Strategic Context: Bangladesh Trade Finance

📊 For Bangladesh’s trade finance ecosystem, the City Bank-ITFC partnership has several strategic implications:

• 💰 Shariah-compliant finance gap — Bangladesh has growing demand for Islamic trade finance
• 💰 Export financing needs — $47B+ annual exports require trade finance support
• 💰 IsDB relationship — complements $1B Eastern Refinery IsDB financing
• 🌏 OIC trade corridor — 57 OIC countries represent significant trade opportunity
• 🌿 Green finance alignment — supports EU sustainability requirements
• 📊 LDC graduation preparation — diversified trade finance reduces dependency

📈 Bangladesh-OIC Trade Context

📊 Bangladesh’s trade with OIC countries is significant:

• 🇦🇪 UAE — major trading partner, re-export hub
• 🇸🇦 Saudi Arabia — LNG supplier, remittance source
• 🇲🇾 Malaysia — palm oil, trade partner
• 🇹🇷 Turkey — growing trade partner
• 🇦🇪 UAE/Gulf — major RMG export destination
• 🇦🇪 Egypt — potential trade corridor to Africa
• 🇮🇷 Iran — LNG supplier (currently disrupted)

💰 Implications for Bangladesh Export Community

📊 For Bangladesh’s export community, the City Bank-ITFC trade finance cooperation offers several benefits:

• 💰 Access to Shariah-compliant trade finance — new funding source for exporters
• 💰 Competitive pricing — ITFC rates may be lower than conventional
• 🌏 OIC market access — trade finance for OIC destination exports
• 🌿 Green finance for compliance — funding for EU sustainability compliance
• 📊 Diversified financing — reduces dependence on Western banks
• 🤝 Intra-OIC trade growth — opens new market opportunities

✅ For Bangladesh’s broader trade finance ecosystem, the City Bank-ITFC partnership demonstrates the growing importance of Islamic trade finance as a complement to conventional banking — particularly for exporters seeking Shariah-compliant financing options or access to OIC markets. With the IsDB Group already financing the $1 billion Eastern Refinery modernisation, the ITFC partnership with City Bank adds another dimension to Bangladesh’s relationship with Islamic development finance institutions.

🌏 For the export community — particularly RMG, pharmaceutical, leather and agro-processing exporters — the availability of ITFC-backed trade finance through City Bank could provide a competitive alternative to conventional trade finance, especially for transactions with OIC destination markets. The discussion of green financing also aligns with the growing need for sustainability-linked trade finance as EU buyers increasingly require ESG compliance from Bangladeshi suppliers. The coming months will reveal whether the expanded cooperation translates into concrete new trade finance products that support Bangladesh’s export diversification agenda.