StanChart, IFC To Invest Up To US$1 Billion To Boost Global Trade

KUALA LUMPUR, March 2 (Bernama) -- Standard Chartered Bank PLC (StanChart) and International Financial Corporation (IFC), have agreed to invest up to US$1 billion (US$1 = RM4.44) to boost global trade in emerging markets. In a joint statement, Standard Chartered and IFC, a member of the World Bank Group, said they would continue their partnership for the third series through the Global Trade Liquidity Programme (GTLP). "This GLTP series comes at an essential time when many global banks are pulling back support due to increasing compliance costs and higher capital requirements for trade under Basel III," said the statement. Through StanChart's strong presence in emerging markets and established trade finance capabilities, the bank would originate a portfolio of trade finance transactions of up to US$1 billion through emerging market issuing banks (EMIBs) with IFC participating up to 50 per cent or up to US$500 million of the portfolio. These EMIBs would extend the financing facility to local importers and exporters and promote global trade. "Facilitating global trade and commerce is the core of what we do as an international bank. Through GTLP, we expect to provide more than US$5 billion to support trade across our footprint over the next three years," said Standard Chartered Global Head for Transaction Banking Alex Manson. Originally established in 2009 in response to the global financial crisis, the prior facilities have been well-utilised, supporting over US$10 billion combined in total trade, it said. The GTLP provided much-needed liquidity, helping commercial utilisation banks to increase credit limits, manage risk and support trade in challenging emerging markets. --BERNAMA