Istanbul, Oct. 2011: The International Islamic Trade Finance Cooperation (ITFC), a member of the Islamic Development Bank Group, in cooperation with Aktif Bank signed a US$40 million financing facility in favor of the leading Turkish grain trader Tiryaki Agro.
By signing this deal, ITFC has completed its first structured trade finance (STF) deal in Turkey in which Aktif Bank poses the role of agent bank. The STF is an innovative financing technique designed for developing markets and is considered more secure than traditional lending. The model is an alternative to conventional payment guarantees and the focus is on the cash flow unlike unsecured financing. The off balance sheet financing model, is self liquidating and risks mitigate on assets enabling the beneficiary to be in a better financial position.
With the view of promoting intra-OIC trade, ITFC and Aktif Bank cooperation brings new financing models to OIC member countries. ITFC’s CEO Dr. Waleed Al-Wohaib emphasized on the importance of Trade Financing in developing Trade relations between OIC member countries, he said ”We are pleased to provide financing to Tiryaki Agro through Aktif Bank”. Al-Wohaib also underlined the significance of utilizing the new Structured Trade Financing model in other sectors in addition to the agriculture sector.
From his end, Aktif Bank’s CEO Dr. Önder Halisdemir commented on the signing “ITFC has successfully implemented Structured Trade Financing in many countries, and now, through Aktif Bank, Turkish companies will start benefiting for the first time from the new Financing model, especially in the food, petrochemical, steel and fertilizer sectors.
