International Islamic Trade Finance Corporation and Danamon Syariah Sign a US$ 200 Million Cooperation Agreement
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International Islamic Trade Finance Corporation and Danamon Syariah Sign a US$ 200 Million Cooperation Agreement
COMBINING STRENGTHS AND COOPERATION TO EXPLORE AND GROW INDONESIAN SHARIAH TRADE FINANCING
Jakarta, 22 January 2015 – The International Islamic Trade Finance Corporation (ITFC), an international financial institution and member of the Islamic Development Bank (IDB) Group, has signed a cooperation agreement on Shariah Joint Trade Financing in Indonesia with PT Bank Danamon Indonesia, Tbk. (Danamon) through its shariah business unit, Danamon Syariah. The main objective of this collaboration is to grow shariah trade financing, stimulate and fasten the growth of shariah productive financing, and to synergize both entities’ strengths. This cooperation is targeted to achieve US$ 1 billion in the first five years, starting with US$ 200 million in 2015.The agreement was signed in Jakarta by Eng. Hani Salem Sonbol, Deputy CEO of ITFC, Henry Ho, Danamon President Director; and Herry Hykmanto, Danamon Syariah Director.
Eng. Hani Salem Sonbol, Deputy CEO of ITFC, said, “We are pleased to work with Danamon in this collaboration and align with the right and active trade finance partner; this partnership is a milestone to boost the growth of Shariah Trade Finance in Indonesia. With its expertise on trade and commodity financing, Danamon has proven its commitment to support the growth of the Trade Finance industry in Indonesia. As for ITFC, this agreement is in line with our core mandate to provide trade financing and facilitating intra-trade among our member countries and with the rest of the world.”
“As a leading Trade Finance Bank in Indonesia, we are delighted to work with ITFC in this collaboration. This is the first time ITFC collaborates in Shariah Joint Trade Financing with an Indonesian bank, and it is with great pride that Danamon was appointed by ITFC as its agent to arrange the financing to customers as well as provide trade finance services and trade collateral management. We believe that this collaboration with ITFC will serve as a long term support to advance Shariah Trade Finance in Indonesia. This is in line with Danamon’s mission, which is to be a customer-centric organization, serving all segments by offering unique value, based on sales and service excellence,” said Henry Ho, Danamon President Director.
Both ITFC and Danamon recognize the capabilities and resources that each company brings and, with this cooperation, have agreed to put their best efforts to bring together those capabilities and resources to search opportunities for joint trade financing cooperation in Indonesia that are within the parameters of shariah principles. This joint financing will enable Danamon’s corporate and commercial customers to get more comprehensive trade finance services, with more competitive pricing.
“Trading is highly encouraged in Islam, as mentioned in surah Al-Baqarah, verse 275, “Allah has permitted trading and forbidden Riba (usury)”. Therefore it is an honor to sign this agreement with ITFC which will provide financial support to advance Shariah Trade Finance in Indonesia. Danamon will give priority to existing clients, and as a preliminary result, we have engaged with several customers who are wishing to embark the business and need a more comprehensive trade finance solution. This is a very good start and we are doing our best to improve our expertise and organizational capability in Trade and Commodity Finance,” said Herry Hykmanto, Danamon Syariah Director.
About Danamon:
PT Bank Danamon Indonesia, Tbk. (‘Danamon’) was established in 1956 and as of September 30, 2014 operates a network of around 2,440, including among others conventional branches, Danamon Simpan Pinjam (DSP) and Syariah units as well as its subsidiaries branches. As of September 30, 2014 Danamon provides its customers with close to 60,000 ATMs, including through its association with ATM Bersama and ALTO, in all 33 provinces in Indonesia. Danamon manages around IDR 194.4 trillion in assets as of September 2014.
Danamon was recently awarded Best Domestic Provider of FX Services, Best Domestic Provider for FX Products and Services, Best Domestic Provider for FX Options, and Best Domestic Provider for FX Research and Market Coverage from Asiamoney Foreign Exchange (FX) Poll 2014. Danamon also received the Indonesia Wow Brand Award 2014 as the Silver Champion in the Banking Industry category for Mortgage Products. Internationally, Danamon was included in the 2014 Forbes Global 2000, which is a list of the world’s largest public companies as compiled by Forbes Magazine.
Danamon is also the sole license holder of Manchester United cards in Indonesia, allowing the Bank to issue Manchester United ATM/Debit cards and credit cards.
PT Adira Dinamika Multi Finance Tbk (Adira Finance), the automotive financing subsidiary of Danamon, operates an extensive branch network in more than 260 cities in Indonesia. Danamon is also the majority owner of PT Asuransi Adira Dinamika (Adira Insurance), a general insurance company and PT Adira Quantum Multifinance (Adira Kredit), a durable goods financing company.
As of September 30, 2014, Danamon was 67.37% owned by Asia Financial (Indonesia) Pte. Ltd., 6.53% by JPMCB-Franklin Templeton Investment Funds and 26.10% by the public.
For further information regarding Danamon, please visit Danamon’s corporate website at:www.danamon.co.id.
About ITFC:
The International Islamic Trade Finance Corporation (ITFC) is an autonomous entity within the Islamic Development Bank (IDB) Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world. ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IDB Group. It commenced operations in January 2008. The consolidation of the IDB Group’s trade finance activities under a single umbrella increased the Corporation’s efficiency in service delivery by enabling rapid response to customer needs in a market-driven business environment.
As a leader in Shari’ah-compliant trade finance, ITFC deploys its expertise and funds to businesses and governments in its member countries. Its primary focus is to encourage intra-trade among OIC (Organization of Islamic Cooperation) member countries. As a member of the IDB Group, ITFC has unique access to governments in its member countries and works as a facilitator to mobilize private and public resources towards achieving its objectives of fostering economic development through trade. The Corporation helps businesses in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools in order to help them compete successfully in the global market.
Operating to world-class standards, the ITFC’s mission is clear from its mandate to be a catalyst for the development of trade among OIC member countries and with the rest of the world. ITFC aspires to be a recognized provider of trade solutions for the OIC Member Countries’ needs; in order to fulfill its brand promise of ‘Advancing Trade & Improving Lives”.