Sace e Iffco, an international group with a large presence in the food & beverage sector, have announced a collaboration aimed at supporting theItalian export since agri-food sector. This takes place as part of the Sace Push Strategy program, aimed at expanding Italian export opportunities in key countries and strengthening the presence of Italian companies in global supply chains.
Sace has taken a significant step in the field of international finance, guaranteeing for the first time a financing structured according to i principles of Islamic finance. This loan was provided entirely by Hsbc, one of the largest international banks, and uses the Commodity murabaha as a financial instrument. A mechanism that replaces interest with an agreement to buy and sell a commodity. In this way, businesses can obtain financing without incurring interest prohibited by the Sharia, Islamic law derived from the Koran and the teachings of the prophet Muhammad.
The goal is to fully exploit the potential of Italian agri-food sector and to strengthen export opportunities for the entire supply chain. This supply chain includes approximately 1,2 million companies, of which 53 thousand are active in the food and beverage sector, contributing to 10% of national exports, equal to 64,4 billion euros in 2023.
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Michael Ron, chief international officer of Sace, declared that this is the "first Push Strategy operation structured according to the principles of Islamic Finance, destined to open markets in the Middle East and other regions, with positive impacts on Italian exports".
Ram Ramanathan, group director and group ffo of Iffco thanked HSBC and Sace "for having contributed to the development of an Islamic finance operation, the first globally, as part of Sace's Push programme, testifying to the partnership, ingenuity and the commitment of our three realities”. Samir Nayak, Director and Group Treasury of Iffco, explained: “We have creatively designed a financial structure working on complex parameters to synchronize the Eca clauses and adapt them to an Islamic structure, providing an innovative solution compared to the conventional offer”.
Finally, Alexei Rybakov, head of Export Finance Menat at HSBC, highlighted that “this operation marks a further development in Shariah compliant structures. Innovative cross-border transactions like this are accelerating trade and investment between Europe and the Middle East.”
