IFC signs $350m trade finance deal with StanChart

The IFC and Standard Chartered Bangladesh have signed a risk-sharing deal worth $350 million, which will make more trade finance available to the bank and importers and exporters of commodities in Bangladesh.

The deal was signed between the two parties in Dhaka on Tuesday, said IFC, the private sector arm of the World Bank Group.

This is the first and largest corporate risk participation programme on a funded basis launched in Bangladesh which includes 50 percent coverage from IFC.

The agreement was signed under the IFC's Critical Commodities Finance Programme or CCFP that shares risk with banks as they expand their emerging market commodities trade portfolios.

The programme finances the exports and imports of agricultural commodities and inputs globally, and imports of energy into the world's poorest countries. Through this partnership, IFC will maintain credit for traders and intermediaries that move food and agricultural products in and out of low-income countries.

As part of the programme, Standard Chartered will originate trade finance transactions from Bangladesh that could enable over $1 billion in trade globally over three years, IFC said.

"Standard Chartered Bank has been one of the largest trade partners for commodity importers of Bangladesh with a strong history of helping industry players grow with different innovative trade solutions. We are honoured and privileged to be the first bank in Bangladesh to launch CCFP with IFC, as the programme will cater to vital sectors such as agriculture, food and energy," said Abrar A Anwar, chief executive officer of Standard Chartered Bangladesh.

"Commodities are a key part of the Bangladesh economy and IFC is delighted to strengthen its long-term partnership with Standard Chartered through this transaction which will boost trade and growth, playing a pivotal role in improving lives of the masses," said Wendy Werner, IFC country manager for Bangladesh, Bhutan and Nepal.

Daniel Hanna, global head of Public Sector and Development Organisations at Standard Chartered, said: "Standard Chartered is delighted to sign another landmark trade agreement with IFC. This is another example of how our long standing partnership with IFC can help unlock innovative financing that supports trade, growth and development."