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IFC and JPMorgan Join Forces to Boost Trade Finance in Asia and the Pacific


In Washington, D.C.:
Lotte Pang
Phone: +1 202 758 4290
E-mail: LPang@ifc.org


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.

About IFC
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, please visit:
JPMorgan Treasury Services,
www.jpmorgan.com/ts
JPMorgan Chase, www.jpmorganchase.com
Habib Bank Limited,
www.habibbankltd.com