IFC, Citi Extend $1 Billion to Support Emerging Market Trade Flows
Washington D.C., London, Osaka – IFC, a member of the World Bank Group, and Citi announced today the signing of a $1 billion risk-sharing facility to stimulate the growth of trade in emerging markets, driving job creation and economic development.
The signing marks the first extension of an existing facility under the IFC Global Trade Liquidity Program. IFC and Citi initially launched a trade finance facility in October 2009. The facility reached $900 million at its peak and supported $6 billion of emerging market trade over its three-year life. The IFC-Citi facility financed more than 2,000 funded trade investment instruments through 92 banks in 23 developing countries.
The facility extension will expand the availability of trade finance for clients in emerging markets over a three-year span through a 50-50 risk-sharing structure. IFC and partners, including other development finance institutions, will contribute $500 million, and Citi will provide an additional $500 million.
Citi will use the funding to originate trade finance transactions in Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East, enabling its bank clients to extend financing to local importers and exporters. The funding is expected to support emerging market trade flows of up to $6 billion through 2015.
"Citi's partnership with the IFC has been a tremendous success, helping to stimulate the recovery and growth of global trade in the emerging markets," said Naveed Sultan, Global Head of Treasury and Trade Solutions business. "We look forward to continuing our partnership with banks, corporations and the public sector across the emerging markets to continue to stimulate global trade."
"As the availability of global trade finance continues to decline, IFC is committed to working with Citi on innovative solutions like the Global Trade Liquidity Program to maintain and expand trade finance flows in the developing world," said Georgina Baker, IFC Director for Global Trade and Supply Chain Solutions. "Citi has been one of IFC's most dedicated partners in trade finance, and IFC looks forward to continuing that partnership to benefit small emerging market firms that rely on trade to grow and create jobs."
Citi was IFC's first partner bank under the Global Trade Liquidity Program, which was launched in 2009 to channel capital from banks and development finance institutions at a time of global scarcity in trade finance. IFC announced an extension of the program in 2012 to continue promoting international trade growth in emerging markets, including many of the world's poorest countries.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. For more information, visit www.ifc.org.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
About Citi Transaction Services
Citi Transaction Services, a division of Citi's Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi's Transaction Services supports over 65,000 clients. As of the third quarter of 2012, it held on average $415 billion in liability balances and $12.8 trillion in assets under custody.
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