Beijing, October 13, 2006 — The
International Finance Corporation, the private sector arm of the World
Bank Group, today announced China Construction Bank Corporation as the
first bank in China to join its Global Trade Finance Program.
Through the program, IFC provides guarantees covering bank risk related
to underlying trade transactions for up to three years. The program is
aimed at supporting trade with emerging markets worldwide and promoting
flows of goods and services between developing countries.
Bonnie Galat, IFC’s head of marketing and sales for the program, said,
“IFC’s Global Trade Finance Program is a natural fit for Chinese banks
with intermediate increasing levels of trade, much of which is destined
for other emerging markets where IFC knows the risk and can facilitate
It is expected that the program will benefit primarily midsize private
Chinese exporters. It will help these companies export to some of the more
difficult markets. It also will allow them to offer competitive export
financing terms and provide them with a guarantee of payment.
William Haworth, East Asia Regional Manager for IFC’s Global Financial
Markets Department, said, “Promoting trade finance and especially South-South
trade finance across emerging markets is one of IFC’s strategic priorities
in China. We believe Chinese banks’ participation in the Global
Trade Finance Program will facilitate trade among developing countries.”
Mr. Jiang Jianhua, Deputy General Manager of China Construction Bank’s
International Business Department, said, “We are pleased to be working
with IFC and participating in the Global Trade Finance Program, which will
enable us to expand our global network of trade partners within its growing
set of participating countries and banks.”
The Global Trade Finance Program offers confirming banks partial or full
guarantees to cover payment risk on banks in emerging markets. These guarantees
are transaction-specific and apply to transactions involving letters of
credit, trade-related promissory notes and bills of exchange, bid and performance
bonds, and advance payment guarantees or credits to suppliers.
The program began operations in September 2005. To date it has booked
500 transactions with an average length of six months and a total volume
of more than $455 million. About 80 percent of the deals have supported
the small and medium enterprise sector, which is a vital source of job
creation and a strategic focus for IFC. Some 37 percent were for transactions
between emerging markets participants. For China, the program has supported
56 export transactions through North American and European confirming banks.
With the inclusion of China Construction Bank in the Global Trade Finance
Program, IFC expects to finance more Chinese exports.
The program has 36 issuing banks (for example in Argentina, Armenia, Azerbaijan,
Bangladesh, Bolivia, Brazil, Kenya, Lebanon, Malta, Mauritania, Moldova,
Mozambique, Mongolia, Nigeria, Pakistan, Russia, Tanzania, and Uganda),
and 82 international confirming banks. For more information, visit
The International Finance Corporation, the private sector arm of the World
Bank Group, is the largest multilateral provider of financing for private
enterprise in developing countries. IFC finances private sector investments,
mobilizes capital in international financial markets, facilitates trade,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to businesses and governments. From
its founding in 1956 through FY06, IFC has committed more than $56 billion
of its own funds and mobilized an additional $24 billion in syndications
for 3,531 companies in 140 developing countries. With the support
of funding from donors, it has also provided more than $1 billion in technical
assistance and advisory services. For more information, visit www.ifc.org.
China Construction Bank Corporation is one of the big four commercial banks
in China. It provides a comprehensive range of commercial banking products
and services. As of June 30, 2006, CCB’s total assets amounted to
RMB5.1 trillion and post-tax profit reached RMB23.2 billion, up 13 percent
over the same period last year. CCB successfully listed its shares on the
Stock Exchange of Hong Kong in October 2005 and became the first of the
big four Chinese commercial banks to list outside mainland China. For
more information, visit www.ccb.com.