Washington/Milan, October 12, 2010—IFC,
a member of the World Bank Group, has joined with the OPEC Fund for International
Development (OFID) in a €250 million, up to three-year risk-sharing facility
with Intesa Sanpaolo to support trade transactions originated through emerging-market
banks in up to 47 countries.
IFC will provide risk share with Intesa Sanpaolo for up to €100 million,
and OFID will provide a counter-guarantee to IFC for up to $50 million.
The Swedish International Development Cooperation Agency has also
expressed interest in supporting the project. Intesa Sanpaolo, which
has a far-reaching trade platform in the project’s targeted regions, will
act as the facility’s global partner bank.
Through Intesa Sanpaolo’s network of issuing banks in emerging markets,
the project will support at least $750 million in trade finance. It
will support banks and companies in Europe and Central Asia, a region that
was severely affected by the financial crisis. The project also will
facilitate trade finance in Latin American and the Caribbean, Asia, and
The investment marks the beginning of the second phase of the multi-stakeholder
Global Trade Liquidity Program, which has supported over $8 billion in
trade finance. The program’s second phase is an unfunded risk-mitigation
program that mobilizes risk-sharing capacity from development finance institutions
and governments to benefit both emerging-market issuing banks and companies
in the real sector.
“IFC is proud to support this important effort to promote trade and small
and medium enterprises in emerging markets,” said Jyrki Koskelo, IFC Vice
President for Global Industries. “As we move into the second phase
of the Global Trade Liquidity Program, our ability to guarantee trade finance
projects by partnering with private sector banks and development finance
institutions will be key to our success.”
Gaetano Micciche, Intesa Sanpaolo’s General Manager, said, “This agreement
testifies to Intesa Sanpaolo’s strong relationship capability across the
world. This opportunity to increase and develop international commerce
shows our commitment to supporting solutions and plans for entrepreneurs
to assert themselves and to consolidate their own presence internationally,
especially in emerging countries.”
Suleiman Al-Herbish, OFID Director General, said, “The concerted actions
of our three institutions will support trade flows in a number of OFID
beneficiary countries. We are pleased to note that this program is
estimated to generate €750 million of incremental trade by September 2012.”
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 www.ifc.org.
For more information about the Intesa Sanpaolo Group, please visit www.group.intesasanpaolo.com.
For more information about OFID, please visit www.ofid.org.