The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank Group (IsDB), and Rabitabank have signed a US$ 10 million Letter of Credit (LC) Confirmation Facility to meet the private sector’s trade finance needs, particularly SME clients and contribute towards the promotion of Sharia-compliant trade financing solutions in Azerbaijan.
This agreement was signed between Eng. Hani Salem Sonbol, CEO of ITFC, and Dr. Aydin Huseynov, Chairman of the Management Board of Rabitabank. The facility will enable the Bank to offer trade finance solutions and contribute towards the development of Islamic finance in Azerbaijan.
The signed facility is recognized as the first LC Confirmation line extended by ITFC to Azerbaijan-based commercial banks and is aligned with ITFC’s Private Sector Strategy, which emphasizes the expansion of partnerships with banks for supporting the private sector and small and medium enterprises in member countries, as well as the expansion of LC Confirmation business.
Commenting on the signing, the CEO of ITFC, Eng. Hani Salem Sonbol stated: “This new partnership with Rabitabank comes to reactivate our interventions in Azerbaijan and highlight our commitment to the growth and the development of its private sector. ITFC remains at the forefront of the promotion of Sharia-compliant trade financing in OIC member countries and we see this new signing as a clear support for the development of Islamic finance offerings in Azerbaijan.”
Chairman of the Management Board of Rabitabank, Dr. Aydin Huseynov, in his turn remarked: “We are elated to welcome ITFC back to Azerbaijan and to formalize this essential agreement. Our joint efforts will play a pivotal role in addressing the trade finance requirements of SMEs, facilitating their growth and contributing to the overall economic prosperity of our community. This partnership will also be crucial in promoting the principles of Sharia-compliant finance.”
Since 2009, ITFC has provided US$ 83.4 million to various private sector clients in Azerbaijan. ITFC values its cooperation with Azerbaijan and invests in the country’s trade development by providing the needed financing to local commercial banks.
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
About the International Islamic Trade and Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$70 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.
Rabitabank, launched in 1993, soon expanded its scope of activities covering different economic fields and turned into an all-purpose bank. During 30 years in business the bank has built a network of 27 branches, with representation in 14 different regions of the country.
Rabitabank, a prominent financial institution, has emerged as a leader in providing comprehensive banking services to individuals, Small and Medium-sized Enterprises (SMEs), and corporate clients. With a strong commitment to digitalization, the bank has set a new standard in the financial industry. Its commitment to digitalization is a testament to its forward-thinking approach. In an era where convenience and speed are paramount, the bank has invested significantly in mobile and internet banking solutions.
Business cooperation with international financial institutions and a large number of customers have laid a solid foundation for the further successful development of the bank.