Press Releases
print

IFC Announces Its First Global Trade Finance Deal in Bangladesh


In Dhaka
Per Kjellerhaug

Email:
Pkjellerhaug@ifc.org

In Washington, D.C.

Rita Jupe

Phone: + 1 (202) 458-8967

Email:  
rjupe@ifc.org


Washington D.C., February 16, 2006—The International Finance Corporation, the private sector arm of the World Bank Group, has concluded the first transaction in Bangladesh under its Global Trade Finance Program.

The transaction supports the confirmation by American Express Bank of a letter of credit issued by Dhaka Bank, for importing of cotton into Bangladesh. IFC’s guarantee provided 100 percent risk coverage and enabled the transaction to proceed quickly and efficiently at commercial pricing, benefiting the importer as well as both banks.

Per Kjellerhaug, IFC’s Regional Representative, said, “This transaction demonstrates IFC's commitment to facilitating cross-border trade and to supporting vital industries in Bangladesh.”

The Global Trade Finance Program is a $500 million program to support trade with emerging markets worldwide and to promote the flows of goods and services between developing countries. IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks as well as to enhance their trade finance service to their clients.

Mr. Mohammad Abu Musa, Deputy Managing Director of Dhaka Bank, said “We are delighted to be the first issuing bank in Bangladesh to use IFC’s Global Trade Finance Program.  We look forward to using this program to increase our transaction volume and serve our clients better.”

John Ruane, American Express Bank ‘s global trade banking head, said, “Our partnership with IFC’s Global Trade Finance Program will enhance our trade finance business worldwide as well as complement our ability to provide efficient trade solutions to our customers.”

Priyamvada Singh, IFC’s South Asia trade specialist, said, “IFC’s program combines global reach and maximum flexibility to accommodate the trade needs of banks—both the confirming and the issuing institutions.”

Dhaka Bank was established as a public limited company in 1994 and began commercial operations in July 1995. This midsize bank has a strong focus on trade finance products for corporate as well as small and medium enterprise clients. It has 28 branches across the country and a wide network of correspondents around the world.

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C.  IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.  Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.  For more information, visit
www.ifc.org.