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.
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Sberbank is Russia’s largest bank and a leading global financial institution. Sberbank holds almost one-third of aggregate Russian banking sector assets, it is the key lender to the national economy and the biggest deposit taker in Russia. The Government of the Russian Federation represented by the Ministry of Finance of the Russian Federation is the principal shareholder of Sberbank owning 50% plus one voting share of the bank’s authorized capital, with the remaining 50% minus one share held by domestic and international investors. Sberbank has customers in 18 countries. Sberbank has the largest distribution network in Russia with about 14,000 branches, while its international operations – subsidiary banks, branches, and chapters – include the UK, US, CIS, Central and Eastern Europe, India, China, and other countries.
The bank holds general banking license No. 1481 issued by the Bank of Russia.
Official websites of the Bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.
Copyright Press Releases 2020
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