Global Trade Finance Program

Transcription

1 Global Trade Finance Program

2 ifc.org/gtfp Global Trade Finance Program Creating Opportunity 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 private sector investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. We play a catalytic role by demonstrating the profitability of investments in emerging markets. Established in 1956, IFC is owned by 183 member countries, a group that collectively determines our policies. Our work in more than 100 countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities. In fiscal year 2011, we invested nearly $19 billion in more than 500 projects in 102 countries, of which $12.2 billion was for our own account. In addition, we mobilized nearly $6.5 billion from other investors. Our Advisory Services project expenditures totaled $206.7 million. IFC: Key Facts Credit rating: AAA (Moody s, Standard & Poor s) Portfolio: $42.8 billion for IFC s own account (as of June 30, 2011) Investments Committed in FY11: $12.2 billion for IFC s own account (518 in 102 countries) Total Staff: Approximately 3,400 (based in 102 offices in 92 countries) Industry Coverage: Trade and Supply Chain Solutions Global financial markets; private equity and investment funds Global manufacturing and services; agribusiness; health and education Infrastructure; information and communication technologies; oil, gas, mining and chemicals; subnational finance Half our investment projects totaling $4.9 billion in commitments and about two-thirds of our Advisory Services project expenditures were in the poorest countries, those served by the International Development Association (IDA). Our Vision is that people should have the opportunity to escape poverty and improve their lives. Our Core Corporate Values are Excellence Commitment Integrity Teamwork Diversity Our Purpose is to create opportunity for people to escape poverty by catalyzing the means for inclusive and sustainable growth, through: Mobilizing other sources of finance for private enterprise development. Promoting open and competitive markets in developing countries. Supporting companies and other private sector partners where there is a gap. Helping to generate productive jobs and deliver essential services to the poor and vulnerable.

3 Global Trade Finance Program ifc.org/gtfp About the GTFP THE Global Trade Finance Program The IFC Global Trade Finance Program (GTFP) guarantees the trade-related payment obligations of approved financial institutions in emerging markets across all regions of the world. Through the GTFP bank network, local financial institutions ( Issuing Banks ) can establish working partnerships with a vast number of major international and regional banks ( Confirming Banks ) in the program, thus broadening access to finance. By tapping the risk mitigation provided by the GTFP, international trade finance providers can enhance their global reach confidently, gain familiarity in new markets, and build relationships with quality counterparty banks around the world. The GTFP complements and extends the capacity of banks to deliver trade finance by providing risk mitigation on a per-transaction basis in challenging markets where trade lines may be limited. The program gives priority support to trade flows that promote critical sectors, such as agriculture and energy efficiency, while maintaining strategic focus on SME importers and exporters and trade between emerging markets, particularly trade with IDA countries (the poorest developing markets as classified by the World Bank). With its global mandate, dedicated trade specialists, and over 400 participating banks, the Program links an extensive network of bank partners worldwide and allows them to conveniently finance their clients imports and exports. Please refer to ifc.org/gtfp for updated country and bank coverage. What are the Advantages for Confirming Banks? For banks receiving guarantee coverage, the GTFP: Expands geographical coverage for servicing export clients Provides risk coverage to leverage trade lines in new or challenging markets Builds new correspondent bank relationships on a low-risk basis Mitigates provisioning and Basel capital requirements What are the Advantages for Issuing Banks? The GTFP supports Issuing Banks by: Offering opportunities to build relationships with new correspondent banks Facilitating trade financing via a global network of GTFP Confirming Banks Mitigating risk profile to counterparty banks Eliminating cash collateral needs Delivering advisory services and training to improve operating standards

4 ifc.org/gtfp Global Trade Finance Program GTFP Country Coverage GTFP Product Line Coverage for unfunded trade transactions IFC covers import letters of credit (LCs) and standby letters of credit (SBLCs), as well as the obligation of the issuer of performance bonds, bid bonds, and advance payment guarantees. Coverage for funded trade transactions IFC covers the obligation of the issuer of a financial instrument for trade financing on-lent to its clients. Instruments such as promissory notes, standby LCs, or credit guarantees in favor of participating Confirming Banks that provide funds to the Issuing Bank can be covered under full or partial guarantees from IFC. Trade finance credit from Confirming Banks supports LC bill discounting or negotiation, bankers acceptance financing, pre-export or post-shipment financing, and post-import financing on a trade asset portfolio or for individual trade transactions.

5 Global Trade Finance Program ifc.org/gtfp GTFP Provides Coverage for a Variety of Trade-Related Instruments SAMPLE TransactionS Advance Payment Guarantee: To support a Japanese engineering company building a power plant in Nigeria, GTFP issued a 100 percent guarantee for an $11 million transaction to the Confirming Bank in the U.K. The Issuing Bank was a local private sector bank in Nigeria. Letter of Credit: GTFP provided a 100 percent guarantee on the import of $23.9 million worth of environmentally-friendly technologies into Russia for the construction of a new-generation coal-powered plant. The Confirming Bank was a Danish bank operating out of Finland; the Issuing Bank was a local private sector bank in Russia. Irrevocable Reimbursement Undertaking: GTFP extended a 45 percent guarantee to cover $1.7 million worth of fertilizer exports from Estonia to Togo, with an IRU issued by a private sector bank in Benin. The Confirming Bank was based in France. Discount against Acceptance of LC Documents: To enable shipments of raw cotton imports into Bangladesh, GTFP provided a 100 percent guarantee for $785,400 to the Discounting Bank based in Australia. The Issuing Bank was a local private sector bank in Bangladesh. Promissory Note: Pre-Export Financing: To finance the export of rice from Paraguay to Brazil and Chile, a U.S.-based Lending Bank provided $850,000 in sixmonth pre-export funding to the Issuing Bank in Paraguay under a 100 percent guarantee from GTFP. Post-Import Financing: A 100 percent guarantee from GTFP allowed a Lending Bank based in Spain to provide $123,000 in six-month postimport financing to the Issuing Bank in Costa Rica. The funds covered the import of medical equipment into Costa Rica from China. Bid Bond: To facilitate implementation of an electronic check clearing system in the Dominican Republic by a Jordanian IT company, GTFP provided 100 percent cover for six months on the $20,000 transaction. The Issuing Bank was a private sector bank in Jordan; the Confirming Bank was based in the United States. Performance Bond: GTFP issued a 100 percent guarantee to cover the shipment of $15,000 worth of furniture from Pakistan to Saudi Arabia. The Confirming Bank was based in Saudi Arabia; the Issuing Bank was a local private sector bank in Pakistan.

6 ifc.org/gtfp Global Trade Finance Program Helping Clients Achieve International Standards IFC s Trade Advisory Program is designed to help GTFP participating banks build their capacity in the areas of trade finance and international trade operations. Since June 2006, over 4,100 participants from more than 60 countries have benefited from trade finance training programs as well as on-site advisory services. This initiative is supported by IFC and donors including Japan, Switzerland, the Netherlands, Sweden, Ireland, Spain and Israel. Benefits: IFC provides local financial institutions with training and support in order to: Transfer current international best practices in trade finance to local markets Upgrade the operational and technical skills of trade finance back offices Improve trade finance risk mitigation techniques Upgrade skills in structuring basic and complex trade finance transactions How does a Bank Participate? In order to identify the relevant trade advisory services for a particular client bank, IFC advisory services initially conducts a diagnostic study to assess needs and develop appropriate terms of reference. IFC advisory services will then work with the client bank to procure a suitable consultant to deliver the services proposed in the terms of reference. TECHNICAL assistance AND advisory OPPORTUNITIES Trade Products covers the basics in trade-related payment options, financial instruments and risks. Documentary Credits covers the full process from the conclusion of the sales contract, establishment of the credit, and checking of documents to final payment. Trade Finance Certification Program is an IFC and ICC (International Chamber of Commerce) e-learning certification program on the finance of international trade. Introduction to Trade E-Learning introduces participants to the mechanics of import and export markets. Trade Operations introduces a systematic approach to achieving a well-controlled and cost-effective back office that meets international standards. Trade Sales is an advanced course that focuses on the development and sales of the trade product within a commercial bank. Applied Trade Finance highlights the concept of risk and the dimension it introduces in the usage and application of trade finance practices. Trade Risk Management strengthens risk-management skills related to trade transactions. Correspondent Banking/KYC Workshop is designed to inform banks of international best practices to support an application for a correspondent banking relationship and to respond to a request from a bank related to its internal KYC compliance procedures. Exporters/Importers Workshop introduces aspects of trade finance and discusses financing solutions. Bank Supervision and Internal Controls enhances skills of commercial bankers working in Internal control departments and Bank Supervision staff of central Banks.

7 GLOBAL TRADE FINANCE PROGRAM ifc.org/gtfp Trade and Supply Chain Solutions GTFP is just one of several risk mitigation products available from IFC. Contact our Global Business Development team to learn more about our suite of innovations to address gaps in the financing needs of underserved clients in emerging markets: Global Trade Liquidity Program mobilizes public and private sector investment to share risk alongside banks on portfolios that support emerging market trade. Global Warehouse Finance Program (GWFP) helps increase the working capital available to food producers and agricultural firms by guaranteeing and lending against warehoused commodities. Global Trade Supplier Finance (GTSF) lowers the costs associated with financing suppliers in emerging markets by purchasing receivables on invoices accepted for payment by approved creditworthy buyers. Distributor Finance allows banks to fund emerging market distribution chains through risk sharing facilities and partial guarantees for distributors and end-users. Structured Trade Finance supports importers and exporters in their cross-border trades of soft commodities by providing funding or risk sharing with partner banks. Systemic Liquidity Solutions provides loans to local banks in a given country to support their working capital and trade finance lending to SMEs. Critical Commodity Finance Program mobilizes public and private sector investment to share risk alongside banks on portfolios that support agriculture and energy commodities trade flows in emerging markets.

8 The GTFP Team Management Team Georgina Baker Director, Trade & Supply Chain T: E: Bonnie Galat Global Head, Business Dev. Global Banks & Multinationals T: E: Scott Stevenson Senior Manager Asia, Europe, and Middle East T: E: German Vegarra Senior Manager Africa and Latin America T: E: Global Business Development Sabrina Borlini Sr. Business Dev. Manager T: +32 (0) E: Zuberoa Mainz Business Dev. Officer T: E: Michael Kurdyla Business Dev. Associate T: E: Emiliano Agopian Trade Analyst T: E: Africa Gboyega Songonuga T: E: Olivier Buyoya Trade Finance Officer T: E: Asia Anurag Mishra T: E: Middle East & North Africa Shehzad Sharjeel T: E: Ahmed H. E. Mohamed Trade Finance Officer T: E: [email protected] Latin America & the Caribbean Antonio Alves T: E: [email protected] Jose Alberto Vivanco Trade Finance Officer T: E: [email protected] Susanne Kavelaar Trade Finance Officer T: E: [email protected] Karla Lopez Trade Finance Analyst T: E: [email protected] Eastern Europe Aleksey Nikiforovich T: x2129 E: [email protected] Southern Europe Mark Rozanski T: E: [email protected] Trade Operations Bilge Ozisik Global Head, Trade Operations T: E: [email protected] Zeynep Ersel Supervisor, Trade Operations T: E: [email protected] Murat Ayik Supervisor, Trade Operations T: E: [email protected] Li Tang Operations Analyst T: E: [email protected] Beatrix von Heintschel Operations Analyst T: E: [email protected] Hande Berdan Operations Analyst T: E: [email protected] Sinan Onat Operations Analyst T: E: [email protected] Ozlem Ates Trade Finance Analyst T: E: [email protected] Training & Advisory Services Gimhani T. Seneviratne Global Head, Trade Advisory T: E: [email protected] Astou Sylla Technical Assistance Coordinator, Asia T: E: [email protected] Claudia Sandrine Ngassa Technical Assistance Coordinator, Africa T: E: [email protected] Claudia del Carmen Gutierrez Technical Assistance Coordinator, Latin America & the Caribbean T: E: [email protected] Communications John McNally Communications Officer T: E: [email protected] Administrative Support Therese Ndeme Carroll Program Assistant & Graphic Designer T: E: [email protected] Inosha Wickramasekera Team Assistant T: E: [email protected] This publication is printed on paper approved by the Forest Stewardship Council, an international certification and labeling system for products that come from responsibly managed forests and verified recycled sources. IFC 2121 Pennsylvania Ave., NW Washington, DC 20433, USA ifc.org/gtfp ifc.org January 2012