The partnership will see the bank grow its business in the region and improve the array of services it offers its customers.
Fina Bank acting Managing Director Rajesh Kapoor says this partnership will enhance trade opportunities in international markets, as the bank leverages on the large base of correspondent banks within the IFC’s Global Trade Finance Program (GTFP).
“Fina Bank through this partnership with IFC has the opportunity to be one of the key facilitating players in global trade,” he said.
Kapoor said that the partnership will also provide an opportunity for the bank to build new and mutually beneficial business relationships with over 500 regional and global banks which are also in the program.
He said that better trade conditions are an engine for economic growth, as they can create new job opportunities, lower the cost of goods and services, and help lift people out of poverty.
Under the transaction signed on Thursday, IFC’s GTFP will guarantee the trade-related payment obligations of Fina Bank.
By tapping the risk mitigation provided by the Global Trade Finance Program, Fina Bank will be able to enhance its global reach, and gain familiarity in new markets.
IFC’s Director for East and Southern Africa Oumar Seydi welcomed the bank to the GTFP, which will serve as a platform for building relationships with the 500 regional and global banks participating in the program.
“IFC’s Global Trade Finance Facility provides credit guarantees that will allow Fina Bank’s clients in Kenya to tap into international markets and expand their business,” said Seydi.
IFC’s GTFP helps banks deliver trade financing by providing risk guarantees in new or challenging markets where trade lines may be constrained.
IFC shares the risk for global banks who want to do more business with local banks and companies.
Since its launch in 2005, the GTFP has facilitated over $40 billion in trade, through nearly 500 banks in 40 countries.
In Kenya, 10 banks are already part of the program, Fina being the newest member.