RIYADH: The International Islamic Trade Finance Corp. has signed a $90 million Murabah agreement with Djibouti to secure energy supply through the import of petroleum products.
The International Hydrocarbons Co. of Djibouti, also known as SIHD, will serve as the executing agency.
ITFC, a member of the Islamic Development Bank, and the Republic of Djibouti have enjoyed a longstanding relationship with a total of $1.6 billion approved by the corporation in favor of the country, with 33 operations targeting the energy and health sectors.
The latest deal was signed between Djibouti’s Economy and Finance Minister Ilyas Moussa Dawaleh and ITFC CEO Hani Salem Sonbol.
“The financing 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,” said a press release issued on Tuesday.
This initiative fosters intra-OIC trade, as the petroleum products will be sourced mainly from other member countries of the Organization of Islamic Cooperation.
ITFC interventions in Djibouti reflect the commitment to supporting the country’s economy, starting with the energy sector and extending its positive impact to vital areas like services, manufacturing, and agriculture. This operation underlines ITFC’s commitment to fulfilling UN SDG 7, “Energy for All.”
Commenting on the agreement, ITFC CEO Sonbol stated: “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.”
The agreement also aligns with the $600 million three-year framework agreement signed in May 2023 between ITFC and Djibouti.
