Hong Kong, August 26, 2008—IFC,
a member of the World Bank Group, and JPMorgan today announced that they
have jointly launched an innovative trade finance structure in Asia and
the Pacific to help facilitate and boost trade activities in the region.
The funded trade advance, a component
of the IFC Global Trade Finance Program, provides cost-effective pre-export
and post-import financing to banks. It combines several trade transactions
into a single trade facility and provides an innovative approach to raising
funds through risk-mitigated avenues. It is also flexible and can be easily
replicated in other regions.
Habib Bank Limited, Pakistan’s largest
privately owned bank, will be the first to benefit from this solution.
It has raised a $55 million trade advance to support its corporate clients’
international trade activities. This will help the bank expand its financing
options as trade flows in Pakistan continue to grow.
“This innovative structure attests
to our strategy to partner with multilaterals like the World Bank Group
and introduce viable and cost-effective solutions to help customers cope
with increasing international trade activities. We are excited about this
first transaction with Habib Bank Limited and committed to supporting financial
institutions in the region,” said Asif Raza, Managing Director, Asia Pacific
Head of Trade Services and Logistics Management, JPMorgan Treasury Services.
“In an environment where liquidity
is scarce, we are thrilled to work with IFC and JPMorgan on this trade
solution. We remain committed to our clients and constantly look for alternative
sources of funding to facilitate trade,” said Tariq Mateen Khan, General
Manager for Financial Institutions International Banking, Habib Bank Limited.
“Creating and delivering this structure
demonstrates our leadership in providing world-class solutions tailored
to our clients’ needs. We plan to expand our capabilities in Pakistan
and look forward to working closely with clients to implement new financing
ideas,” said Reza Rahim, Senior Country Officer of JPMorgan Pakistan.
“We are pleased to partner with JPMorgan
to support Habib Bank Limited’s expanding trade business. We will continue
to look for innovative ways to boost trade in emerging markets,” said
Priyamvada Singh, IFC Regional Head for Trade, Asia and the Middle East.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
The IFC Global Trade Finance Program
provides flexible and structured solutions to meet funded and non-funded
trade finance requirements and offers risk mitigation for financial institutions
in emerging markets. Participating banks gain access to finance and a network
of global correspondent banks worldwide.
To learn more about IFC’s partners,
JPMorgan Treasury Services, www.jpmorgan.com/ts
JPMorgan Chase, www.jpmorganchase.com
Habib Bank Limited, www.habibbankltd.com