Sberbank has structured a trade finance deal for the first time on its record. The deal involved the International Islamic Trade Finance Corporation (ITFC), a leading provider of Trade Solutions and member of the Islamic Development Bank (IsDB) Group, and was implemented through Sberbank’s subsidiary bank in Switzerland that has commodity trade finance at the core of its operations.
Oleg Ganeev, Deputy Chairman of the Executive Board, Sberbank:
“Islamic finance is a relatively new business area for Sberbank with its unconventional business model, its pool of customers, and unique products. We are really happy that Sberbank has partnered with ITFC in trade finance. Under the deal handled by our subsidiary bank in Switzerland, we’ve structured an export letter of credit to supply Russian wheat to Egypt. We’re confident that the deal will unlock new opportunities to develop this business area for our customers”.
Egypt’s General Authority for Supply Commodities (GASC) acted as the buyer. It’s a long-term customer of the bank and a major trader of agricultural products.
The International Islamic Trade Finance Corporation (ITFC), headquartered in Saudi Arabia, was established in 2008 to drive trade among member countries of the Organisation of Islamic Cooperation (OIC). ITFC’s stellar rating will enable Sberbank to increase its share in Russian wheat exports to Egypt significantly.