46357 - GTLP SMBC III

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Summary of Investment Information

Project Number

46357

Company Name

Sumitomo Mitsui Banking corporation RSF

Date SPI Disclosed

Mar 22, 2022

Country

World Region

Region

Global

Projected Board Date

Mar 16, 2022

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Mar 22, 2022

Department

CFGPD - Global Industry, Financial Markets/Trade & Supply Chain, Products

Industry

Financial Markets

Previous Events

Invested : Sep 27, 2022

Sector

Commercial Banking - Trade and Supply Chain

Project Description

The proposed investment is a funded 50-50% risk-sharing facility with Sumitomo Mitsui Banking Corporation (“SMBC” or the “Bank”) in a portfolio of trade-related assets for up to US$1 billion with IFC investment of up to US$500 million (the “Project”). The Project portfolio will be consisting of emerging market FIs across globe including IDA and Low-Income countries and will include climate eligible transactions (20% of the portfolio on a best effort basis).

The Project sits inside the IFC COVID-19 Facility, which is more broadly part of the wider World Bank Group response to the global outbreak of coronavirus and will augment trade limits supporting the continued flow of trade transactions and critical commodities in countries facing financing challenges and disruption of cash flows due to the global outbreak of the coronavirus.

The Project will use the Global Trade Liquidity Program (GTLP) platform, an innovative and well-received trade finance program launched by the IFC in 2009, through which IFC will play a countercyclical role during crisis, especially at times when other lending institutions or investors’ appetite may be subdued as negative economic impact is worsening in the rapid spread of COVID-19.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	0.0
Loan	500.0
Equity

Development Impact

IFC's additionality is driven largely by its countercyclical role during crises, especially at times when other lending institutions or investors' appetite may be subdued. Under the IFC Crisis Response Facility, it is the combination of: (i) IFC's successful experience with rapid crisis response efforts, especially in the trade finance space; (ii) its extensive network of banks that support global emerging markets; (iii) its set of programs aimed at investing both large scale and transactional liquidity and capital for trade finance and working capital in emerging markets; (iv) its ability to support private sector clients to address liquidity constraints in response to COVID-19 and to provide critical goods, equipment, and supplies; (v) its ability to help clients re-direct supply chains; and (vi) its support to continued employment in countries of operation.

E&S Category Rationale / Risks and Mitigation

This Project will support short-term trade finance activities and therefore has been classified as a Category FI-3 project according to IFC Sustainability Policy. The trade finance activities that would be supported by the Project will be required to meet the requirements of IFC Exclusion List and other exclusions such as coal and palm oil-related activities. The Project will not support any activities with significant E&S concerns such as (a) involuntary resettlement, (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) significant occupational health and safety risks. IFC will have the ability to exclude or suspend from participating in the Project any EMIBs based on their E&S performances and ability to implement IFC E&S requirements. Each trade pool will be supported by underlying documentation with the designated bank, and the agreement with SMBC will specify that the underlying traded goods meet IFC requirements and will require SMBC to report on implementation. IFC will also review each underlying transaction to confirm it meets the exclusion criteria.

Contacts

For Inquiries About the Project, Contact

Sumitomo Mitsui Banking Corporation
Philip Janoff
Vice President, Structured Export Finance
+1.646.231.7583
Philip_Janoff@smbcgroup.com
277 Park Avenue, New York, NY 10172
smbcgroup.com

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