global trade finance program - ifc

IFC 2121 Pennsylvania Ave., NWWashington, DC 20433, USA ifc.org/gtfp

Global Trade Finance Program

GLOBAL TRADE FINANCE PROGRAM ifc.org/gtfp

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.

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:

• Mobilizingothersourcesoffinanceforprivateenterprisedevelopment.

• Promotingopenandcompetitivemarketsindevelopingcountries.

• Supportingcompaniesandotherprivatesectorpartnerswherethereisa

gap.

• Helpingtogenerateproductivejobsanddeliveressentialservicestothe

poor and vulnerable.

IFC: Key FactsCredit rat ing: A A A (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; sub-

national finance

Global Trade Finance ProGram ifc.org/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.

about the GTFP

What are the advantages for confirming banks?

For banks receiving guarantee coverage, the GTFP:

• Expandsgeographicalcoverageforservicingexportclients

• Providesriskcoveragetoleveragetradelinesinneworchallengingmarkets

• Buildsnewcorrespondentbankrelationshipsonalow-riskbasis

• MitigatesprovisioningandBaselcapitalrequirements

What are the advantages for issuing banks?

TheGTFPsupportsIssuingBanksby:

• Offeringopportunitiestobuildrelationshipswithnewcorrespondentbanks

• FacilitatingtradefinancingviaaglobalnetworkofGTFPConfirmingBanks

• Mitigatingriskprofiletocounterpartybanks

• Eliminatingcashcollateralneeds

• Deliveringadvisoryservicesandtrainingtoimproveoperatingstandards


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.

GTFP country coverage


GTFP Provides coverage for a Variety of Trade-related instruments

samPlE TransacTions

advance Payment Guarantee:TosupportaJapaneseengineeringcompanybuildingapowerplantinNigeria,GTFPissueda100percent

guaranteeforan$11milliontransactiontotheConfirmingBankinthe

U.K.TheIssuingBankwasalocalprivatesectorbankinNigeria.

letter of credit: GTFP provided a 100 percent guarantee on theimportof$23.9millionworthofenvironmentally-friendlytechnologies

into Russia for the construction of a new-generation coal-powered

plant.TheConfirmingBankwasaDanishbankoperatingoutofFinland;

theIssuingBankwasalocalprivatesectorbankinRussia.

irrevocable reimbursement undertaking: GTFP extended a 45percentguaranteetocover$1.7millionworthoffertilizerexportsfrom

EstoniatoTogo,withanIRUissuedbyaprivatesectorbankinBenin.The

ConfirmingBankwasbasedinFrance.

discount against acceptance of lc documents: To enableshipmentsofrawcottonimportsintoBangladesh,GTFPprovideda100

percent guarantee for $785,400 to the Discounting Bank based in

Australia.TheIssuingBankwasalocalprivatesectorbankinBangladesh.

Promissory note: Pre-Export Financing: To finance the export of rice from Paraguay to

BrazilandChile,aU.S.-basedLendingBankprovided$850,000insix-

monthpre-exportfundingtotheIssuingBankinParaguayundera100

percentguaranteefromGTFP.

Post-ImportFinancing:A100percentguaranteefromGTFPalloweda

LendingBankbased inSpain toprovide$123,000 insix-monthpost-

importfinancingtotheIssuingBankinCostaRica.Thefundscovered

theimportofmedicalequipmentintoCostaRicafromChina.

bid bond: Tofacilitateimplementationofanelectroniccheckclearing

system in the Dominican Republic by a Jordanian IT company, GTFP

provided100percentcoverforsixmonthsonthe$20,000transaction.

The IssuingBankwasaprivatesectorbank inJordan; theConfirming

BankwasbasedintheUnitedStates.

Performance bond: GTFPissueda100percentguaranteetocovertheshipmentof$15,000worthoffurniturefromPakistantoSaudiArabia.

TheConfirmingBankwasbasedinSaudiArabia;theIssuingBankwasa

localprivatesectorbankinPakistan.


Helping clients achieve international Standards

Trade Products coversthebasicsintrade-relatedpayment

options,financialinstrumentsandrisks.

documentary credits covers the full process from the

conclusionofthesalescontract,establishmentofthecredit,

andcheckingofdocumentstofinalpayment.

Trade operations introduces a systematic approach to

achieving a well-controlled and cost-effective back office

thatmeetsinternationalstandards.

Trade sales is an advanced course that focuses on thedevelopment and sales of the trade product within a

commercialbank.

applied Trade Finance highlightstheconceptofriskandthedimensionitintroducesintheusageandapplicationof

tradefinancepractices.

Trade risk management strengthensrisk-management

skillsrelatedtotradetransactions.

TEcHnical assisTancE and advisorY oPPorTuniTiEs

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:

IFCprovideslocalfinancialinstitutionswithtrainingandsupportinorderto:

• Transfercurrentinternationalbestpracticesintradefinancetolocalmarkets

• Upgradetheoperationalandtechnicalskillsoftradefinancebackoffices

• Improvetradefinanceriskmitigationtechniques

• Upgradeskillsinstructuringbasicandcomplextradefinancetransactions

How does a bank Participate? Inordertoidentifytherelevanttradeadvisoryservices

for a particular client bank, IFC advisory services

initially conducts a diagnostic study to assess needs

and develop appropriate terms of reference. IFC

advisoryserviceswill thenworkwiththeclientbank

toprocureasuitableconsultanttodelivertheservices

proposedinthetermsofreference.

Trade Finance certification Program isanIFCandICC(International Chamber of Commerce) e-learning

certificationprogramonthefinanceofinternationaltrade.

introduction to Trade E-learning introduces partici-pantstothemechanicsofimportandexportmarkets.

correspondent banking/KYc Workshop is designedtoinformbanksofinternationalbestpracticestosupportan

applicationforacorrespondentbankingrelationshipandto

respondtoarequestfromabankrelatedtoitsinternalKYC

complianceprocedures.

Exporters/importers Workshop introduces aspects oftradefinanceanddiscussesfinancingsolutions.

bank supervision and internal controls enhances

skillsofcommercialbankersworkinginInternalcontrolde-

partmentsandBankSupervisionstaffofcentralBanks.

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.

GLOBAL TRADE FINANCE PROGRAM ifc.org/gtfp

ifc.org January 2012

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The GTFP TeamManagement TeamGeorgina BakerDirector, Trade & Supply ChainT: +1 202 473 3175E: [email protected]

Bonnie Galat Global Head, Business Dev. Global Banks & Multinationals T: +1 202 473 5335E: [email protected]

Scott StevensonSenior ManagerAsia, Europe, and Middle EastT: +90 212 385 2573E: [email protected]

German Vegarra Senior ManagerAfrica and Latin AmericaT: +1 202 458 8209 E: [email protected]

Global Business DevelopmentSabrina Borlini Sr. Business Dev. Manager T: +32 (0) 478 947 087 E: [email protected]

Zuberoa Mainz Business Dev. Officer T: +1 202 473 5573 E: [email protected]

Michael KurdylaBusiness Dev. AssociateT: +1 202 458 0033 E: [email protected]

Emiliano Agopian Trade Analyst T: +1 202 458 9113 E: [email protected]

AfricaGboyega SongonugaRegional HeadT: +27 11 731 3133E: [email protected]

Olivier BuyoyaTrade Finance OfficerT: +27 11 731 3025E: [email protected]

Asia Anurag MishraRegional Head T: +91 77 3870 7535E: [email protected]

Middle East & North AfricaShehzad SharjeelRegional Head T: +90 212 385 2561E: [email protected]

Ahmed H. E. MohamedTrade Finance OfficerT: +20 2 2461 9100E: [email protected]

Latin America & the CaribbeanAntonio AlvesRegional HeadT: +1 202 458 5056E: [email protected]

Jose Alberto VivancoTrade Finance OfficerT: +52 55 3098 0232E: [email protected]

Susanne KavelaarTrade Finance OfficerT: +54 11 4114 7200E: [email protected]

Karla Lopez Trade Finance Analyst T: +1 202 458 8683 E: [email protected]

Eastern EuropeAleksey NikiforovichRegional HeadT: +7 495 411 7555 x2129E: [email protected]

Southern EuropeMark RozanskiRegional HeadT: +1 202 473 4640E: [email protected]

Trade OperationsBilge OzisikGlobal Head, Trade OperationsT: +90 212 385 2542E: [email protected]

Zeynep ErselSupervisor, Trade OperationsT: +1 202 458 2502E: [email protected]

Murat Ayik Supervisor, Trade Operations T: +90 212 385 2579 E: [email protected]

Li Tang Operations Analyst T: +1 202 473 7678 E: [email protected]

Beatrix von Heintschel Operations Analyst T: +1 202 473 0071 E: [email protected]

Hande Berdan Operations Analyst T: +90 212 385 2523 E: [email protected]

Sinan Onat Operations Analyst T: +90 212 385 2594 E: [email protected]

Ozlem AtesTrade Finance AnalystT: +90 212 385 3072E: [email protected]

Training & Advisory ServicesGimhani T. Seneviratne Global Head, Trade Advisory T: +27 11 731 3005 E: [email protected]

Astou Sylla Technical Assistance Coordinator, Asia T: +66 88 659 59 15 E: [email protected]

Claudia Sandrine Ngassa Technical Assistance Coordinator,Africa T: +27 11 731 3130 E: [email protected]

Claudia del Carmen Gutierrez Technical Assistance Coordinator, Latin America & the CaribbeanT: +511 611 2566 E: [email protected]

CommunicationsJohn McNallyCommunications Officer T: +1 202 458 0723 E: [email protected]

Administrative SupportTherese Ndeme Carroll Program Assistant & Graphic Designer T: +1 202 458 2232 E: [email protected]

Inosha WickramasekeraTeam AssistantT: +1 202 458 0991 E: [email protected]

IFC 2121 Pennsylvania Ave., NWWashington, DC 20433, USA ifc.org/gtfp

global trade finance program - ifc

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