The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed two Murabaha Agreements with the total amount of USD 55 million. The first agreement is in favour of the Govt. of Djibouti represented by the Ministry of Economy and Finance and Societe Internationale des Hydrocarbures de Djibouti (SIHD) as the executing agency for the Purchase of goods and services and the second agreement is a syndication for the purchase of petroleum products respectively. The agreements were signed by Mr. Simon Mibrathu, Secretary General Ministry of Budget Djibouti, and Eng. Hani Salem Sonbol, Chief Executive Officer of ITFC. The signing ceremony was on the sidelines of the IDB Group’s 41st Annual Meeting that took place at Jakarta Convention Center (JCC), Jakarta, Indonesia.
This financing aims at contributing to secure the supply of petroleum products fueling vehicles and powerplants in the country, and support the economic growth in the whole country in addition to supplying households with cooking fuel. The energy sector is employing more than 1000 employees, by sustaining the economic role of the energy sector, this financing also indirectly contributes to the social welfare of its employees, and their families and contributing in reducing unemployment.
From his side, Eng. Hani Sonbol, CEO of ITFC said, “ITFC financing will contribute to secure the supply of petroleum products fueling vehicles and power plants in the country, and therefore support the economic growth. Moreover, imported petroleum products are essential for households and public administration that would serve all economic sectors.”
From his end, Mr. Simon Mibrathu. Secretary General commented, “The two financing agreements that we have signed today with ITFC for the financing of imports of petroleum products is extremely important that is enables Djibouti to have sufficient supply of such strategic products. It’s the second agreement signed since 2014 and we are very satisfied with the implementation of this operation ”
ITFC has approved almost USD200 million for the imports of petroleum products since inception in 2008. The country’s national oil company, Société Internationale des Hydrocarbures de Djibouti (SHD) was founded in 2000 and its mission is to secure supplies of petroleum products at the best prices.
It is worth noting that ITFC financing of petroleum products in favor of Djibouti has gained international recognition when it was awarded Deal of the Year by the trade & Forfeiting Review (TFR) Magazine in 2015
