Silema, Malta, April 20, 2011—IFC,
a member of the World Bank Group, has entered into a loan agreement with
Malta-based FIMBank to help ensure that its client companies in the Middle
East and Africa can import the production materials and machinery they
need to grow their businesses.
The $60 million loan agreement will help
FIMBank to finance trade transactions for emerging market firms in consumer
goods, small machinery, raw materials and components. It comes at a time
when global volumes of trade finance are decreasing and their costs increasing,
due mostly to growing liquidity pressures and perceived risks in developing
“These funds will be used to support
trade in emerging market countries and help contribute to growth in major
sectors of their economies,” said FIMBank President Margrith Lutschg-Emmenegger.
“We appreciate the backing of partners such as IFC, whose ongoing
support signals an important vote of confidence in the FIMBank Group and
Through this loan agreement, IFC plans
to help finance at least 60 trade transactions, of which 20 are expected
to be in the poorest countries in the region.
“This trade finance deal represents
an excellent opportunity for IFC to help businesses in Africa and the Middle
East make the import and export transactions necessary to grow their operations,”
said Aftab Ahmed, IFC Director of Financial Markets in Europe, Central
Asia, Middle East and North Africa. “At a time of market uncertainty,
we are pleased to be able to help FIMBank help the firms that drive growth
in the Middle East and Africa.”
The loan agreement consists of a $15
million IFC senior loan, with a further $45 million from the Saudi Fund
for Development, to be administered through an IFC trust fund.
IFC has been a shareholder in FIMBank,
an international trade finance bank focused on delivering trade finance
solutions to businesses worldwide, since 2005, and is also a joint-venture
partner in FIMBank’s FactorRus and Egypt Factors joint-venture funds.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
To learn more about FIMBank, visit