New IsDB financing plan to strengthen Bangladesh’s energy, food security

In this photo released by the International Islamic Trade Finance Corporation on Jan. 13, 2025, Nazeem Noordali, COO of the IITFC, signs an agreement with Shahriar Kader Siddiky, secretary of the Economic Relations Division of the Bangladeshi Ministry of Finance, at the IITFC headquarters in Jeddah. (IITFC)
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Updated 15 January 2025
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New IsDB financing plan to strengthen Bangladesh’s energy, food security

  • International Islamic Trade Finance Corp. offers $2.75bn support
  • For the first time financing extended for Bangladesh’s fertilizer imports

Dhaka: A new agreement on a $2.75 billion Islamic Development Bank financing loan for the Bangladeshi oil and agriculture sectors aims to boost the South Asian nation’s energy and food security by facilitating the import of petroleum products, liquified natural gas and fertilizers.

The International Islamic Trade Finance Corp., a division of the Jeddah-based IsDB, announced earlier this week that it had signed a “landmark annual financing plan with the Government of Bangladesh for US$2.75 billion to support the country’s energy and agriculture sectors.”

The plan will cover the period from July 2025 to June 2026 and will “facilitate the importation of petroleum products, Liquified Natural Gas (LNG) and fertilizers by Bangladesh Petroleum Corporation (BPC), Bangladesh Oil, Gas & Mineral Resources Corporation (Petrobangla) and Bangladesh Agricultural Development Corporation (BADC) respectively,” the ITFC said in a statement.

Bangladesh imports most of its fuel and requires about 1.5 million metric tons of crude oil annually, according to BPC.

The IITFC loan will help the state-owned entity responsible for importing and marketing fuel oil meet its obligations to the suppliers. The two main ones are Saudi Aramco and the UAE’s Adnoc.

“Without the loan support from ITFC, it wouldn’t have been possible for us to ensure a smooth petroleum supply in the local market. For importing crude oil, we need a letter of credit support of around $80 million. Our state-owned banks can’t provide such a huge amount,” Mohammed Morshed Hossain Azad, BPC’s general manager of finance, told Arab News.

“ITFC pays this amount to Saudi Aramco and UAE-based Adnoc on behalf of Bangladesh Petroleum Corp. After six months, we repay this amount to ITFC in installments through our state-owned banks. This loan support from ITFC was crucial for Bangladesh’s energy security … For maintaining a smooth and uninterrupted supply of fuel in our market, there is no alternative in hand.”

While Bangladesh’s energy imports have been supported by ITFC financing before, it is the first time that fertilizer imports are too.

Bangladesh’s annual demand for chemical fertilizers is about 6 million metric tons, of which about 80 percent comes from abroad.

“The timely supply of fertilizer is very important for ensuring the food security of around 175 million people of Bangladesh,” Mohammed Moazzem Hossain, BADC accounts controller, told Arab News.

Under the ITFC deal, the BADC will import triple superphosphate and diammonium phosphate from Saudi Arabia, Tunisia and Morocco.

“We import DAP and TSP fertilizer from these three Muslim countries,” Hossain said.

“This is the first time in the history of Bangladesh that we have received loan support for importing fertilizer. The interest rate is also convenient for us.”


Winter storm packing snow and strong winds to descend on Great Lakes, Northeast

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Winter storm packing snow and strong winds to descend on Great Lakes, Northeast

  • The fierce winds on Lake Erie sent water surging toward the basin’s eastern end near Buffalo, New York, while lowering water on the western side in Michigan to expose normally submerged lakebed — even the wreck of a car and a snowmobile

NEW YORK: A wild winter storm was expected to bring strong winds, heavy snow and frigid temperatures to the Great Lakes and Northeast on Tuesday, a day after a bomb cyclone barreled across the northern US and left tens of thousands of customers without power.
The storm that hit parts of the Plains and Great Lakes on Monday brought sharply colder air, strong winds and a mix of snow, ice and rain, leading to treacherous travel. Forecasters said it intensified quickly enough to meet the criteria of a bomb cyclone, a system that strengthens rapidly as pressure drops.
Nationwide, more than 127,000 customers were without power Tuesday morning, more than a third of them in Michigan, according to Poweroutage.us.

BACKGROUND

The storm that hit parts of the Plains and Great Lakes on Monday brought sharply colder air, strong winds and a mix of snow, ice and rain, leading to treacherous travel.

As the storm moved into Canada, the National Weather Service predicted more inclement weather conditions for the Eastern US, including quick bursts of heavy snow and gusty winds known as snow squalls. Blustery winds were expected to add to the arctic chill, with low temperatures dipping below freezing as far south as the Florida panhandle, the agency said.
New York Gov. Kathy Hochul warned that whiteout conditions were expected Tuesday in parts of the state, including the Syracuse metro area.
“If you’re in an impacted area, please avoid all unnecessary travel,” she said in a post on the social platform X.
Snow piled up quickly in Michigan’s Upper Peninsula on Monday, where as much as 2 feet (60 centimeters) fell in some areas, according to the National Weather Service. Meteorologist Ryan Metzger said additional snow was expected in the coming days, although totals would be far lighter.
Waves on Lake Superior that were expected to reach 20 feet (6 meters) on Monday sent all but one cargo ship into harbors for shelter, according to MarineTraffic.com.
The fierce winds on Lake Erie sent water surging toward the basin’s eastern end near Buffalo, New York, while lowering water on the western side in Michigan to expose normally submerged lakebed — even the wreck of a car and a snowmobile.
Kevin Aldrich, 33, a maintenance worker from Monroe, Michigan, said he has never seen the lake recede so much and was surprised on Monday to spot remnants of piers dating back to the 1830s. He posted photos on social media of wooden pilings sticking up several feet from the muck.
“Where those are at would typically be probably 12 feet deep,” he said. “We can usually drive our boat over them.”
Dangerous wind chills plunged as low as minus 30 F (minus 34 C) across parts of North Dakota and Minnesota on Monday. And in northeast West Virginia, rare, nearly hurricane-force winds were recorded on a mountain near Dolly Sods, according to the National Weather Service.
In Iowa, after blizzard conditions eased by Monday morning, high winds continued blowing snow across roadways, keeping more than 200 miles (320 kilometers) of Interstate 35 closed. State troopers reported dozens of crashes during the storm, including one that killed a person.
On the West Coast, the National Weather Service warned that moderate to strong Santa Ana winds were expected in parts of Southern California through Tuesday, raising concerns about downed trees in areas where recent storms had saturated the soil. Two more storms were forecast later this week, with rain on New Year’s Day potentially soaking the Rose Parade in Pasadena for the first time in about two decades.