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ITFC finances US$100mn to boost energy sector in Maldives

ITFC MalThe deal aims to boost Maldives energy sector. (Image source: ITFC)The International Islamic Trade Finance Corporation (ITFC) has signed a syndicated murabaha financing agreement for US$100mn with the State Trading Organisation (STO), a government owned company in the Republic of Maldives

Under the agreement, the Murabaha financing will secure more than 75 per cent of the purchase of petroleum products requirement of the Maldives and will support the economic development under the government’s public sector infrastructure programme.

Highlighting the importance of this partnership, Nazeem Noordali, CEO of ITFC, commented on the importance of maintaining oil price stability in Maldives, where he pointed out that the facility is part of ITFC’s broad goal of supporting strategic sectors of its member countries.

“Securing the energy sector is not only critical for the economic growth of Maldives, but it is essential for households and public administration that would serve all economic sectors,” he added.

Ahmed Shaheer, managing director of STO, praised the level of cooperation between STO and ITFC. He added, “With the government embarking on infrastructure development projects aiming to strengthen and diversify its economy, this financing will serve as the building block for the future growth of Maldives.”

This deal comes in line with ITFC’s strategy of focusing on majoe sectors for member countries and supporting intra-OIC trade.