Standard Chartered and IFC enter $1.25 Billion Funding Partnership to Boost Global Trade

April 7, 2009, London - Standard Chartered has announced that it has agreed with the IFC, a member of the World Bank Group, to develop a $1.25 billion funding partnership to facilitate global trade finance. The agreement is the first to emerge from the Global Trade Liquidity Program (GTLP), a trade finance initiative announced earlier this week by World Bank President Robert B. Zoellick.

As part of the programme, Standard Chartered will originate trade finance transactions of up to $1.25 billion from emerging markets banks, which will, in turn, extend trade financing to their importer and exporter clients in their presence countries. IFC and other participating development organizations will invest up to $500 million in these transactions and participate in the risk. This arrangement could provide up to $7.5 billion in trade funding to Asia, Middle East, Africa and Latin American countries over a three year period.

"It's great to work in partnership with the IFC to create this pioneering program to promote global trade finance. We are proud to be the first global bank to join the partnership to get world trade moving again," said Peter Sands, Group Chief Executive of Standard Chartered. "Our established footprint in Asia, Africa, and the Middle East, along with our long history of supporting trade flows to and from these regions, position us well to provide vital funding to growing economies now."

Robert B. Zoellick, President of the World Bank Group, said, "We welcome the tremendous degree of cooperation between public and private sector institutions that allows us to come together to launch the Global Trade Liquidity Program for developing countries. I welcome G-20 support for this timely and targeted solution that will provide trade finance to support businesses across developing markets."

The GTLP, which will raise funds from international finance and development institutions, governments, and banks, will help extend trade finance to under-served importers and exporters in developing countries. The initiative, which is ultimately expected to support approximately $50 billion in trade volumes, aims to address trade finance liquidity constraints arising from the global credit crunch. The GTLP represents a unique and coordinated global initiative which brings together governments, international development and finance institutions, and private sector banks to support trade in developing markets.