The International Islamic Trade Finance Corporation (ITFC) has signed a US$235mn murabaha agreement with the Egyptian General Petroleum Corporation (EGPC) to import petroleum products into Egypt.

A syndicate of international and local banks will finance the deal under a mudaraba agreement, which acts as a contract of joint services among the participating banks. The banks include Bangladesh Central Bank, the Opec Fund for International
Development (OFID), Faisal Islamic Bank of Egypt, National Bank for Development (in co-operation with Abu Dhabi Islamic Bank), the United Bank in Cairo, the Central Bank of Egypt and the Arab Investment Bank and Jordan Islamic Bank.

The financing is part of the US$2.2bn framework co-operation agreement signed in March this year between the ITFC and the Egyptian government. The pact aims to contribute to the provision of strategic commodities, such as petroleum and petroleum products, in addition to wheat and food-stuff in Egypt.

The signing took place on October 1, 2012 at the headquarters of the ministry of finance in Cairo.

“ITFC’s trade financing solutions offered are a confirmation of its role and responsibility towards its member countries. ITFC has a major confidence in the Egyptian economy and the government’s ability to meet its financial obligations,” Waleed Al-Wohaib, CEO of ITFC says.