Project Description
The proposed project involves an unfunded risk participation in which IFC with support from development finance institutions (“DFIs”), bilateral and multilateral organizations, and governments and government/development agencies (collectively the “Program Partners”) will provide risk participation of up to $240 million to Intesa Sanpaolo S.p.A. (“Intesa Sanpaolo” or the “Bank”) for a portfolio of trade transactions originated by issuing banks in emerging markets (“EMIBs”) located primarily in Europe and Central Asia. The project seeks to provide Intesa Sanpaolo with credit risk mitigation to allow it to continue to expand its emerging markets trade finance portfolio, while simultaneously supporting EMIBs that have been adversely affected by the financial and economic crisis. Program Partners will likely include the Swedish International Development Cooperation Agency (“SIDA”) and the OPEC Fund for International Development (“OFID”).
The proposed project is a second phase of IFC’s multi-faceted Global Trade Liquidity Program (“GTLP”), which was developed as a crisis response. The GTLP-Guarantee is an unfunded, portfolio-based, trade-focused program with mobilization from development finance institutions and governments to extend portfolio-based guarantees for trade finance to reach under-served clients globally.