Standard Chartered has partnered International Financial Corporation (IFC), a member of the World Bank Group, to offer a US$1.0 billion loan facility to aid trade finance and sustain flows across emerging markets. 

The two institutions explained that the facility would also further narrow the gap in global trade finance. 

How it works: The facility allows IFC and Standard Chartered to share the risk of a portfolio of corporate and small and medium-sized enterprises (SME) trade flows on a 50-50 basis. The risk-sharing arrangement is expected to enable over $4 billion in trade finance across markets in Asia, the Middle East, and Africa over a three-year period.  

By promoting trade facilitation, the facility will help narrow the $1.5 trillion global trade finance gap at a time when some banks are exiting the trade space. 

READ MORE:Women entrepreneurs set to benefit $200 million from Union Bank 

 The partnership builds on Standard Chartered’s longstanding presence in emerging markets and leading trade finance capabilities, and IFC’s global reach and market coverage to increase availability of trade financ

Business day

e in some of the most challenging markets,  including some of the world’s poorest countries. This will bring trade finance to local and regional companies, some of which are credit-constrained and rely on bank trade facilities to manage cash flows and purchase raw inputs. 

 The Lenders speak: Senior Director, Financial Institutions Group, IFC, Paulo de Bolle, said, “Trade is a key driver of economic growth in emerging marketsThis facility is a unique partnership that can help counter de-risking trends in developing countries and support real-sector demand for trade finance.” 

READ ALSO: Eland Oil restructures $35 million loan from Standard Chartered

Deal book 300 x 250
Deal book 300 x 250

 Global Head, Trade Distribution, Standard CharteredNicolas Langlois, said, “As a leader in trade finance connecting our clients across the world’s most dynamic corridors, we are committed to facilitating global trade and driving the growth and prosperity of local economies. We are delighted to be partnering with IFC to further our efforts.”  

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.