Sberbank has structured a trade finance deal with an Islamic Development Bank (IsDB) group member for the first time. It features an export letter of credit (L/C).

The deal was implemented through a Sberbank subsidiary that focuses on commodity trade finance and involved IsDB group member International Islamic Trade Finance Corporation.

Unlocking new opportunities

The deal was handled by Sberbank's subsidiary bank in Switzerland, which structured an export L/C to supply Russian wheat to Egypt.

According to deputy chairman of the Sberbank executive board, Oleg Ganeev, Islamic finance is a relatively new business area for Russia's largest bank but he is "confident that the deal will unlock new opportunities to develop this business area for our customers."

Long-term customer

Egypt's General Authority for Supply Commodities acted as the buyer.

It is a long-term customer of the bank and a major trader of agricultural products.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.