State Trading Organization (STO) has agreed to purchase necessary goods worth MVR 2.9 billion with the help of the Islamic financing provider, Islamic Trade Financing Corporation (ITFC).
The credit facility agreement between STO and ITFC was signed to purchase goods worth 189 US Dollars. The islamic Murabahah financing facility entails that ITFC will purchase the goods from suppliers as requested by STO and sell it to the trading company with an added profit percentage to the cost price.
The agreement was signed this morning at Hotel JEN, where the Managing Director of STO, Hussain Amru signed on behalf of the company and CEO of ITFC, Hani Salem Sonbol represented their corporation.
STO wishes to purchase fuel, goods such as flour, sugar, rice, medicine and medical supplies. STO has previously entered a similar agreement of MVR 2.7 billion with the financing corporation.
The agreement signed today was the most consequential agreement of this nature entailing the largest sum ITFC has financed to date.