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Stanchart clinches $250m deal with IFC

Stanchart clinches $250m deal with IFC
Written by Chiwoyu Sinyangwe
Monday, June 29, 2009 2:37:58 PM

STANDARD Chartered has clinched a financing deal of about US$250 million from the International Finance Corporation (IFC) to boost trade flows to and from Africa among other regions.

According to the statement obtained over the weekend, Standard Chartered becomes the first bank to seal the Global Trade Liquidity Programme (GTLP) partnership with IFC, the financing arm of the World Bank.

The Global Trade Liquidity Programme (GTLP) is a global trade initiative of the IFC where funds are raised from international finance and development institutions, governments, and banks, to help extend trade finance to underserved importers and exporters in developing countries.

The initiative is expected to support approximately US$50 billion in trade volumes and it aims to address trade finance liquidity constraint arising from the global credit crunch.

"Standard Chartered has finalised its Global Trade Liquidity Programme (GTLP) partnership with the International Finance Corporation (IFC). As the first bank to bring the GTLP into operation, Standard Chartered is ready to make the first drawdown of funds in the next 7-10 days," the statement announced.

"The Bank estimates that the initial drawdown of funds will be in the region of US$200 million - US$250 million, representing about 20 per cent of the available fund size of US$1.25 billion. The full US$1.25 billion programme is expected to be exercised over the next few weeks to support markets which need it most."

The statement announced that Standard Chartered's existing global network and infrastructure, a key feature of the Bank's value proposition in the GTLP, would enable the quick delivery of liquidity to regions and countries when and where it is most needed.

"The fast deployment of funds will provide a much needed stimulus to global trade finance. In particular, the Bank envisages that the programme will give a critical boost to trade flows to and from Africa, South Asia, Middle East and Latin America," the statement read in part.

"Importers and exporters in these regions will directly benefit from an injection of liquidity and capacity into the local trade finance markets..."

Labels: GTLP, STANCHART, TRADE, World Bank

posted by MrK @ 1:38 PM