Albaraka Türk has signed a €20 million murabaha financing agreement with the International Islamic Trade Finance Corporation (ITFC).
According to a statement from the bank, the agreement with ITFC—an entity of the Islamic Development Bank (IsDB) Group—aims to support the development of the private sector in Türkiye, foster the growth of small and medium-sized enterprises (SMEs), and promote sustainable trade.
The €20 million facility is intended to expand access to participation banking–compliant trade finance solutions for private sector clients in Türkiye, particularly SMEs. It will support the import of essential goods and commodities as well as pre-export financing needs.
Commenting on the agreement, ITFC Chief Executive Officer of Trade Finance Abdihamid Abu said the deal establishes a strategic partnership with Albaraka Türk.
“This partnership aligns with Türkiye’s priorities to develop SMEs and expand exports, as well as ITFC’s mission to broaden access to Shariah-compliant trade finance and enable businesses to compete and create employment,” Abu said.
Serhan Yıldırım, Deputy General Manager of Treasury and International Banking at Albaraka Türk Participation Bank, said they were pleased to strengthen their long-standing partnership with ITFC through the murabaha financing agreement.
Yıldırım noted that the facility will enable the bank to better serve its customers—especially SMEs—by providing greater access to participation banking–compliant trade finance solutions.
“This facility also represents the first step of a broader cooperation process that could include additional financing transactions agreed upon by both parties in the future,” he said. “Supporting Türkiye’s private sector and advancing trade form the foundation of our ‘Pioneering Banking’ mission, and this collaboration reflects our shared vision for sustainable growth and economic development.”
Source: Anadolu Ajansı/ Prepared by: İlayda Gök