NAIROBI, Kenya, April 17 – Standard Chartered and the International Finance Corporation(IFC) have announced the signing of a USD700 million(Sh94.3 billion) investment in IFC’s Global Trade Liquidity Programme (GTLP) to support global trade finance across Asia, the Middle East, Africa and Latin America.
This renewed facility is expected to support up to USD6.4 billion(Sh862.4billion) in international trade over three years by supporting about 850 importers and exporters involved in critical commodities, basic goods, and other essential materials to meet market demand.
“We are delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that is testament to both organisations’ unwavering commitment to narrow the trade finance gap,” said Sunil Kaushal, Regional Chief Executive Officer for Africa & Middle East at Standard Chartered.
“As a trade bank, we have 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.”
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 programme helps banks grow their credit limits, manage risk and support trade across developing markets which are often under-served.
“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,” said Mohamed Gouled, IFC Vice President.
“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.”
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.
