7000.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	7000.0
Loan
Equity

* These investment figures are indicative

Project Outcome: Stakeholder effects – Access to Trade Finance for Issuing Banks and Traders: GTFP provides trade finance support to Issuing Banks (“IB”) in Emerging and Developing Markets and their trade finance customers by providing IFC’s guarantee through risk mitigation to their correspondent banks, and thereby making these trade flows happen. This unmet potential trade financing or the ‘Trade Finance Gap’ is estimated to be US$1.7 trillion globally according to Asian Development Bank (ADB) and $81 billion in Sub-Saharan Africa (as of 2022) according to the African Development Bank (AfDB). Quality and Capacity Improvements: GTFP delivers important trainings related to strengthening the capacity of IBs to handle AML/CFT/KYC compliance, and to improve the understanding of specific trade finance products and structures. Economy-wide effects: Cumulatively, GTFP guarantees have the potential to meaningfully contribute to the economic growth of Emerging Market and Developing Economies (EMDEs). Numerous studies have shown that Trade, GDP and Trade Finance are positively correlated: trade drives GDP growth, and trade finance is essential for trade to happen. Contribution to Market Creation Integration: GTFP improves overall market integration by (1) maintaining and expanding trade finance, financial linkages and trade across multiple markets through strengthening these bilateral correspondent banking connections; (2) serving as an enabling platform to make new connections between local and international banks and their customers; (3) channeling new sources of capital to support EMDE trade flows through demonstration and replication of successful correspondent banking connections and the trade finance program itself as a successful investment instrument. GTFP is IFC’s flagship of Trade Finance Solutions and an entrance-product offering for new banking relationships in challenging countries due to the relatively low risk associated with the Trade Finance asset class and its proven track record. Resilience: In lower income/IDA, fragile and conflict-affected countries, and smaller players in middle income countries, GTFP builds, protects, and deepens trade finance networks by continually enabling individual trade transactions happen, which slowly builds resilience of trade networks, trade, and income to these economies. This support is especially critical in the maintenance of liquidity and essential goods when market is facing shocks, under stress, or otherwise in crisis. GTFP also ensures that the flow of essential goods and finance is maintained, preventing a potential crisis, further building resiliency in the market’s development trajectory. GTFP also contributes to the elevation of trade finance standards through the implementation of various trainings building resilience in the financial institutions that operate within these markets. GTFP is also structured in a way to rapidly address gaps in know-how (e.g. AML/CFT) through its proven client network and training programs.

Financial – Financing Structure: By joining the GTFP, the Bank will have access to a network of over 300 global and regional confirming banks operating in 70 countries which the Bank wouldn’t have otherwise. Non-Financial – Knowledge, Innovation, and Capacity Building: The project aims to enable the Bank to benefit from IFC’s technical expertise and best practice recommendations

This Project will support short-term trade finance activities. The E&S risks and impacts associated with these activities are considered low and the project has therefore been classified as a category FI-3 project in accordance with IFC's Sustainability Policy. The trade finance activities supported by the Project will be required to meet the requirements of the IFC's Exclusion List and other exclusions deemed necessary. 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. It will also not support any activities related to upstream oil & gas production and activities related to coal such as coal mining, coal transportation, coal-fired power plants, or infrastructure services exclusively dedicated to support any of these activities. IFC will review the details of the underlying trade transactions to confirm that they do not include activities in the IFC Exclusion List and any other exclusions.