Johannesburg, South Africa, February
4, 2011 -- IFC, a member of the World Bank Group, and the Commonwealth
Development Corporation (CDC Group), said today they would extend a trade
finance facility of up to $125 million to Germany’s Commerzbank AG, which
will use the guarantee financing to support cross-border trade in Africa,
promoting economic growth on the continent.
IFC will invest in Commerzbank through
an unfunded, risk-participation guarantee instrument on a portfolio of
trade transactions. The CDC Group will provide IFC a counter guarantee
of up to $50 million to support this guarantee investment.
Commerzbank will match IFC’s guarantee
to create a $250 million facility that will support short-term trade across
a number of sectors in Africa. These funds are expected to support up to
$1 billion in trade finance transactions over a two-year period through
Commerzbank’s network of emerging-market issuing banks in Africa.
IFC’s Director: Short Term Finance,
Georgina Baker, said, “Promoting trade is an important part of IFC's strategy
to support the private sector in Africa. By extending this trade finance
facility, IFC is demonstrating its commitment to increasing Africa’s share
of global trade and helping the flow of consumer goods, machinery, commodities,
and other items across the continent.”
Christof Gabriel Maetze, Member of the
Executive Board and Global Head of Financial Institutions of Commerzbank,
said, "Commerzbank is a global leader in trade finance for Africa,
working with more than 500 banks on the continent. Its experience with
African trade is outstanding. This excellent basis enables Commerzbank
to broaden and deepen its relationship with African banks and the IFC facility
fits perfectly into our African growth strategy. We have already partnered
with IFC on the Global Trade Liquidity and Global Trade Finance Programs
and worked well with this world-class, multilateral financial institution."
This is IFC’s second trade finance
facility with Commerzbank AG. The first funded risk participation guarantee
instrument was signed in November 2009 for up to US$125 million, with the
support of IFC and the Government of Canada.
IFC’s Global Trade Liquidity Program
is a global initiative that brings together governments, development finance
institutions, and private sector banks to support trade in developing markets
and address the shortage of trade finance following the global financial
GTLP launched in May 2009, channeling
much-needed funds to back trade in developing countries. Through the program,
IFC provides guarantee coverage of bank risk in emerging markets, allowing
recipients to expand their trade finance transactions within an extensive
network of countries and banks and to enhance their trade finance coverage.
As of January 19, 2011, the GTLP had disbursed $1.7 billion to seven
program banks worldwide, supporting $11 billion in trade.
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.
Commerzbank is the leading bank for
private and corporate clients in Germany. With the segments Private Clients,
Mittelstandsbank, Corporates & Markets, Central & Eastern Europe
as well as Asset Based Finance, the bank offers its customers an attractive
product portfolio, and is a strong partner for the export-oriented SME
sector in Germany and worldwide. With a total of some 1,200 branches, Commerzbank
has the densest network of branches among German private banks. It has
above 60 sites in more than 50 countries and serves approximately 14 million
private clients as well as 1 million business and corporate clients. In
2009, it posted gross revenues of EUR 10.9 billion with some 63,000 employees.