DHAKA: Standard Chartered has signed a risk-sharing agreement with IFC under its global Critical Commodities Finance Program (CCFP) worth $ 350 million.
This is the first and largest corporate risk participation program on a funded basis launched in Bangladesh which includes 50% coverage from IFC on pre-identified obligors, providing capacity and flexibility.
As part of the program, Standard Chartered will originate trade finance transactions from Bangladesh that could enable over US$1.0 billion in trade globally over a three year period, said a press release on Thursday (October 27).
Daniel Hanna, Global Head of Public Sector and Development Organisations at Standard Chartered noted, “Standard Chartered is delighted to sign another landmark trade agreement with IFC. This is another example of how our long standing partnership with IFC can help unlock innovative financing that supports trade, growth and development”.
“Standard Chartered Bank, Bangladesh, has been one of the largest trade partners for commodity importers of Bangladesh with a strong history of helping industry players grow with different innovative trade solutions. We are honoured and privileged to be the first bank in Bangladesh to launch CCFP with IFC, as the program will cater to vital sectors such as agriculture, food and energy,” said Abrar A Anwar, CEO, Standard Chartered Bank, Bangladesh.
This measure will go a long way in providing sustainable economic growth as we remain a committed partner of progress for Bangladesh, he added.
“Commodities are a key part of the Bangladesh economy and IFC is delighted to strengthen its long-term partnership with Standard Chartered through this transaction which will boost trade and growth, playing a pivotal role in improving lives of the masses,” said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal.
The Critical Commodities Finance Program (CCFP) shares risk with banks as they expand their emerging market commodities trade portfolios.
According to the release, the program finances the exports and imports of agricultural commodities and inputs globally, and imports of energy into the world’s poorest countries.
Through this innovative partnership, IFC will maintain credit for traders and intermediaries that move food and agricultural products in and out of low-income countries.
By supporting commodity-backed finance and outreach in partnership with SCB, CCFP will encourage key economic sectors, which will ultimately help increase access to finance and develop local markets.
BDST: 1700 HRS, OCT 27, 2016
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