SCB-Mezz Trade

completed

As a result of the financial crisis, flows of trade finance to emerging markets countries have fallen in excess of the reduction in trade flows. The global reduction in trade finance is mostly the result of scarcity of capital, reduction in liquidity, and exit of certain market participants. In order to expand its trade finance operations in emerging markets, Standard Chartered Bank has approached IFC with a request to provide capital relief on a revolving portfolio of trade related exposures, through a mezzanine risk sharing investment of up to $60 million. The portfolio will consist of a mix of funded and unfunded trade finance exposures to banks and financial institutions to support trade in emerging markets.