Danamon Syariah, the shariah business unit of Bank Danamon, has signed a US$200mn co-operation agreement with the International Islamic Trade Finance Corporation (ITFC) to grow shariah trade financing in Indonesia.
“This is the first time ITFC collaborates in shariah joint trade financing with an Indonesian bank, and it is with great pride that Danamon was appointed by ITFC as its agent to arrange the financing to customers as well as provide trade finance services and trade collateral management,” says Henry Ho, Danamon president director. “We believe that this collaboration with ITFC will serve as a long-term support to advance shariah trade finance in Indonesia.”
In terms of disbursement, GTR understands that Danamon will give priority to existing clients, and has already engaged with several customers on the matter. It is hoped that the facility will reach US$1bn in the first five years.
“This joint financing will enable Danamon’s corporate and commercial customers to get more comprehensive trade finance services, with more competitive pricing,” says a statement issued by the bank.