Standard Chartered (Standchart) and the International Finance Corporation (IFC) have announced the signing of a $700 million investment in the IFC’s Global Trade Liquidity Programme (GTLP) to support global trade finance.
Since the launch of the initial facility in 2009, the Standard Chartered GTLP facilities have shown strong reach and impact in supporting trade in emerging markets, as well as low/lower-middle-income countries.
When combined, these facilities have supported over $20.5 billion in global trade through over 150 Emerging Market Issuing Banks (EMIBs) in 37 countries across 17,746 transactions, without any defaults.
This renewed facility is expected to support up to $6.4 billion in trade over three years across Asia, the Middle East, Africa, and Latin America by supporting about 850 importers and exporters involved in critical commodities, basic goods, and other essential materials to meet market demand.
The GTLP program continues to evolve to reflect changing market dynamics and now features a significant climate component as well as seeking greater activity in the areas of IDA markets and food security.
Testament to Global Trade
Sunil Kaushal, Regional Chief Executive Officer for Africa & Middle East at Standard Chartered, said that they were delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that is a testament to both organizations’ unwavering commitment to narrow the trade finance gap.
He said that as a leading trade bank, Standard Chartered has a crucial role to play in enhancing the accessibility to the capital and liquidity needed to facilitate global trade and to do so in a sustainable manner.
“Particularly in today’s challenging post-pandemic macro environment, such partnerships can help continue to provide the much-needed liquidity to boost trade flows and drive economic growth. This partnership is at the core of what we do as a Bank and in complete alignment with our stand of Resetting Globalisation,” he added.
The GLTP facility has proven to be a highly effective means to channel financing to support emerging market trade flows and represents a unique and coordinated global initiative that brings together governments, international development, and financial institutions, as well as private sector banks. By providing liquidity or guarantees, the program helps banks grow their credit limits, manage risk and support trade across developing markets which are often under-served.
In his comments, Mohamed Gouled, IFC Vice President, said that the joint work of Standard Chartered and the IFC Trade & Supply Chain Department over the years has helped support trade in Emerging Markets, a key component of growth and job creation.
“Given our aligned footprint, shared vision for sustainable development, and ability to deploy capital and expertise where our support is needed the most, I look forward to continuing to innovate together and to further expanding our impactful partnership in trade with an increased focus on Sub-Saharan Africa and supporting smaller suppliers further down the supply chain,” Gouled added.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
Standard Chartered is a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.