1. International Islamic Trade Finance Corporation (ITFC)
(A member of the IDB Group)
Islamic Finance Awareness Seminar in Brazil
San Paulo, October 4-5
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2. Chairman - President of the IDB Group Chief Executive Officer (CEO)
ITFC Management
Board of Directors
Chairman - President of the IDB Group
Chief Executive Officer (CEO)
Deputy Chief Executive Officer (DCEO)
10 Directors
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3. ITFC Mission & Vision Mission vision
We exist to be a catalyst for the development of trade among OIC member countries and with the rest of the world
ITFC is to be a recognized provider of
trade solutions for OIC MCs needs
ITFC’s desired future intended state:
We are fostering OIC MCs trade and trade-integration
We are responsive to customers’ needs with innovative shariah compliant solutions
We are the preferred choice for trade solutions
We are delivering fair returns for our shareholders
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4. Major Objective – Catalyst Role:
Article 5 of the Articles of Agreement of ITFC states :
“ The purpose of the Corporation shall be to promote trade of member countries of the Organization of Islamic Conference through providing trade finance and engaging in activities that facilitate intra-trade and international trade”
Makkah Declaration (2005).
Increase the intra-OIC trade volumes to 20% of the world trade by 2015.
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5. Financial Institutions
Members of ITFC
IDB is the major shareholder of ITFC
Countries 38
Financial Institutions 17
Total is 55
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6. ITFC Establishment:
Resolution to establish the ITFC was approved during the IDB Board of
Governors meeting in 2005 in Malaysia
The ITFC’s Articles of Agreement was signed during the IDB Board of
Governor’s meeting in Kuwait in 2006
ITFC Became operational as of 10 January 2008.
Authorized capital is US$ 3 billion
Subscribed capital is US$ 750 million
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7. Operating Performance :
Approval of Trade Finance ( 1429H – 1430H )
US$ million
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8. Operating Performance :
Analysis of approvals :
Geographic :
US$ million
1429H
Percentage
1430H
Asia / CIS
1,281
51%
1,477
68%
MENA
989
40%
530
25%
Africa
235 9%
159 7%
Total
2,505
100%
2,166
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9. Operating Performance :
Analysis of approvals :
Public/Private Sector
US$ million
Least Developed Member Countries:
1429H 1, %
1430H %
Public Sector
Private Sector
Total
1429H
Amount
Percentage
1,405
56 % 
1,100
44 % 
2,505
100% 
1430H
Amount
Percentage
1,265
 58 %
901
42 % 
2,166
100% 
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10. Operating Performance :
Analysis of approvals
Intra-OIC trade “Source of Supply”
1429H 2, %
1430H 1, %
Major Commodities
1429H Crude Oil, Agricultural inputs and Fertilizers, Aluminum,
Industrial Materials
1430H Crude Oil, Industrial raw materials, Sugar, Aluminum, Food
products
Disbursements
1429H US$ 1.3 Billion
1430H US$ 1.5 Billion
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11. Operating Performance :
Lines of Financing for SMEs
1429H Lines US$ million
1430H Line US$ million
Funds Mobilized : Syndications & Co-Financing
1429H US$ 878 million % of approvals
1430H US$ 794 million % of approvals
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12. Key Operational Partners:
IFC
AfDB
SFD
OFID
ATFP
Banks and Financial Institutions in the Middle East, Far East and Europe e.g. HSBC, JP Morgan, BNP Paribas and other local and regional banks.
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13. Trade Cooperation and Promotion Program(TCPP):
Activities carried out in the last two years TCPP classified into :
Trade Promotion
Trade Facilitation
Capacity Building
Development of Strategic Commodities
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14. Modes of Financing
Murabahah (Cost-plus sale) : Under this mode, ITFC will purchase goods or commodities from a supplier at the request of the Beneficiary and then sell them to the Beneficiary with a deferred payment arrangement. The difference between the Purchase Price and the Sale Price is a reasonable mark-up added to the Purchase Price
Other Products:
Bai Ajel (Installment Sale)
Istisna’a (Manufacturing Contract)
Ijarah (Leasing)
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15. Main Features of Import Finance :
Transaction Structure : Murabaha
Currency of Finance : US Dollar
Eligible Goods : All goods acceptable under ITFC’s Trade Financing Rules
Tenor : 3 – 12 months
Mark-up : According to the market
Security : Bank Guarantee, Sovereign guarantee, Structured trade
Finance.. etc.
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16. Modes of Finance : Direct Finance Co-finance Syndication
Structured Trade Finance
Lines of Financing to local banks for the benefit of SMEs.
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17. Key ITFC-financed strategic commodities
a) Oil and related products
b) Raw sugar
c) Plastics
d) Chemicals
e) Coffee, wheat, cotton, etc…
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18. Collection Account Bank
Example: Raw Sugar Deal between Indonesian Importer and Supplier from Brazil 4. CM
(Warehouse)
ITFC 7.
Importer
Documents presented 3. 2 1. 5. 6.
payment
Collection Account Bank
Suppliers 1.
ITFC receives 20% deposit of the invoice from Indonesian Importer. Money is transferred to ITFC.
Goods are shipped and documents are presented.
ITFC pays the Supplier.
Sugar is delivered to the Warehouse under Collateral Management.CM issues Warehouse Receipt to ITFC on sugar under custody.
PT AP pays for the value of sugar it requires into the Collection Account.
Escrow Account Bank gives release instruction to CM upon receipt of payment.
Indonesian Importer takes delivery of sugar for refining.

19. Contact Info
International Islamic Trade Finance Corporation:
Tel :
Fax :
P.O. Box 55335, Jeddah 21534
Kingdom of Saudi Arabia
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20. Thank you for your attention
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