Business

ITFC finances $100million to boost Maldives energy sector

MALE — The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group signed with the State Trading Organization (STO), a government owned company in the Republic of Maldives, a syndicated murabaha financing agreement for $ 100 million.

The Murabaha financing will secure more than 75 percent of the purchase of petroleum products requirement of the Maldives and will go a long way to support the economic development under the Government’s Public Sector Infrastructure Program.

The agreement was signed by Nazeem Noordali, ITFC chief operating officer (COO) and Ahmed Shaheer, managing director, STO in the presence of Mohamed Mihad, chief financial officer, STO under the auspices of Ahmed Munawar, the finance minister of Maldives.

Highlighting the importance of this partnership, Nazeem Noordali commented on the importance of maintaining oil price stability in Maldives, where he pointed out that the facility is part of ITFC’s broad goal of supporting strategic sectors of its member countries, “securing the energy sector is not only critical for the economic growth of Maldives, but it is essential for households and public administration that would serve all economic sectors.”

From his side, Ahmed Shaheer, managing director, STO praised the level of cooperation between STO and ITFC, he also added: “With the government embarking on infrastructure development projects aiming to strengthen and diversify its economy, this financing will serve as the building block for the future growth of Maldives.”

This deal comes in line with ITFC’s strategy of focusing on key sectors for member countries and supporting intra-OIC trade. Also, leveraging IsDB Group and external partnership.

It is worth mentioning that ITFC had provided $145 million of financing in favor of Maldives since ITFC inception in 2008. — SG

Full details are available at the link below:

 

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