Washington, D.C., April 2, 2012—IFC,
a member of the World Bank Group, launched a risk-sharing facility today
with BNP Paribas (Suisse) SA that will improve access to finance for the
agricultural sector in Sub-Saharan Africa and Eastern Europe, enabling
increased production in some of the world’s poorest countries.
The facility will provide $100 million for up to three years to support
the financing needs of agricultural firms through the IFC Global Warehouse
Finance Program. IFC and BNP Paribas will partner to provide borrowers
with short-term loans against the value of their produce, using warehouse
receipts or similar stock-financing instruments.
“With IFC’s partnership, we will be able to expand lending to our clients
in the agricultural sector in Sub-Saharan Africa and Eastern Europe, providing
them with much-needed liquidity,” said Cinzia Maurer-Tatti, Global Head
of the Transaction Bank Group at BNP Paribas.
The program will enable the increased production of export commodities—including
cashews, cocoa, and coffee—to spur trade and economic development in low-income
countries such as Burundi, Cote d’Ivoire, and Uganda. It will also help
boost the availability of critical cereals like corn, rice, and wheat to
promote local food security.
Georgina Baker, IFC Director, Global Trade and Supply Chain Solutions,
said: “This project will improve food security and promote exports by
reaching agricultural players in emerging markets. We are pleased to partner
with BNP Paribas, a leader in commodity finance in the developing world.”
IFC started the Global Warehouse Finance Program in 2010 to increase working-capital
financing for farmers, traders, and exporters in emerging markets, by leveraging
their own production. The program is expected to reach up to 208,600 farmers
across emerging markets in all regions and contribute to food availability
for 7.5 million people by 2014.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
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