Citi and World Bank Group member IFC have today announced a $1.2 billion risk sharing facility to support trade and economic development in several emerging markets.
Funding will be used to originate and fund trade finance transactions in Africa Asia, Latin America, Europe and the Middle East.
The deal marks an extension of two existing facilities under IFC’s Global Trade Liquidity Program, having previously signed their first trade finance facility in October 2009. IFC will contribute an initial $600 million while Citi will provide an additional $600 million.
“As the availability of global trade finance continues to decline, IFC is committed to working with Citi to find innovative ways to help expand trade finance flows in the developing world – and the Global Trade Liquidity Program is one such successful effort,” said Marcos Brujis, IFC director, Financial Institutions Group.
The funding is expected to support trade in emerging markets by up to $6 billion through 2019 and Anurag Chaudhary, global head of distribution for Citi’s treasury and trade solutions spoke of the benefits of the partnership.
"Citi has been a trusted partner to banks, corporations and the public sector across the emerging markets for many decades, and through our collaboration with IFC – as well as other development and export credit agency partners around the globe – we are firmly committed to restoring the flow of trade and commerce financing around the world.” Chaudhary said.