GTLP SMBC III

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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.