Egypt is set to receive a US$1bn loan from the International Islamic Trade Finance Corporation (ITFC) to finance the country’s petroleum and food imports.

The agreement was signed by the planning and international cooperation minister, Faiza Abu el-Naga on behalf of the government of Egypt and the ITFC’s CEO Waleed Al-Wohaib.

The loan is part of a previously announced agreement signed in March this year to provide Egypt’s energy and food sectors with US$2.5bn, through shariah-compliant trade financing solutions, ITFC says in a statement.

Under the existing framework agreement, the ITFC has agreed to provide the Egyptian General Petroleum Corporation (EGPC) and the General Authority of Supply Commodities (GASC) each with a US$400mn a year loan for three years.

Since its inception in 2008, the ITFC had approved more than US$1.2bn in financing for the Egypt’s governmental bodies and private companies operating in sectors such as food, petroleum and gas.