New Delhi, India, June 4, 2013—IFC,
a member of the World Bank Group, is partnering Axis Bank to support trade
financing requirements of Indian exporters so that they can access markets
globally and boost the country’s international trade.
IFC will support Axis Bank’s trade
finance business by providing partial or full guarantees covering payment
risk of its clients. IFC’s Global Trade Finance Program promotes trade
among emerging markets, complementing the capacity of banks to ensure liquidity
to export-oriented small and medium enterprises. The program’s network
enables local financial institutions to tie up with major international
banks and offer competitive financing.
“IFC’s trade finance facility will
support Axis Bank's ability to help small businesses tap growth opportunities,”
said Sidharth Rath, President, Treasury and Business Banking, Axis Bank.
“With wider access to IFC’s global network of partner banks, we aim to
facilitate trading transactions of our customers at low risk.”
IFC’s Global Trade Finance Program
was launched in 2005 mainly to increase the share of developing countries
in global trade. Under the program, IFC has globally provided $23 billion
in credit guarantees for more than 26,000 trade transactions. The program
brings together over 500 banks in 150 countries, linking large banks in
developed markets with smaller ones in fragile and conflicted-affected
states and the poorest regions of middle-income countries.
"A recent IFC study on Indian micro,
small and medium enterprises, found that banks are currently meeting only
one-fourth of the financing demand from small businesses. Access to trade
finance is a critical part of their need,” said Thomas Davenport, IFC
Director for South Asia. “This partnership will enable Axis Bank to meet
critical liquidity needs of small and medium borrowers and grow their businesses."
Axis Bank is an existing client of IFC.
In December 2011, IFC had provided Axis Bank with a $60 million credit
facility for financing renewable energy and energy efficiency projects.
IFC is also supporting Axis Bank in piloting innovative banking channels
using remittances, helping improve access to finance for low-income people.
Axis Bank offers a range of financial services and products to all customer
segments including large and mid-corporates, small and medium enterprises,
agriculture and retail businesses.
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, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.