December 16, 2013, New York - IFC,
a member of the World Bank Group, and Standard Chartered Bank have signed
a landmark risk sharing facility, which will increase the amount of Renminbi
(RMB) denominated trade finance available to Chinese banks, as well as
corporates and businesses in China and across Asia and other emerging markets
involved in imports and exports to China. This marks IFC’s first venture
into RMB denominated cross-border trade finance, building on the success
of IFC's award winning global trade programs.
The facility of up to RMB 3 billion (USD
500 million equivalent) brings together leading market players and is anchored
with an investment of up to USD 250 million from Standard Chartered and
USD100 million from IFC in a 50:50 risk participation agreement. An
additional USD100 million has been mobilized from regional leader, the
Korea Development Bank (KDB), as well as USD 50 million from Swiss Re Corporate
Solutions through its subsidiary Swiss Re International SE. During the
three-year life of the program, it is expected to finance trade flows of
over USD 6 billion (RMB 36 billion).
Peter Sands, Group CEO, Standard Chartered
said, “We are proud to partner with the IFC in this landmark RMB agreement
that will offer access to affordable credit in developing countries across
Asia, Africa and the Middle East. With 28% of China’s international trade
expected to be denominated in the RMB by 2020, we are confident that this
program will play a key role in enabling trade in a currency that is heralding
major changes in the financial system.”
Jin-Yong Cai, IFC Executive Vice President
and CEO said, "By reducing trading costs and increasing the participation
of smaller, under-represented banks in the RMB trade finance market, this
investment will allow suppliers of agricultural products, equipment, and
other essential goods to reach new markets, helping support economic growth
and boosting shared prosperity.”
Over the past three years, RMB trade
finance has accelerated significantly with an increasing proportion of
China’s trade now settled in RMB. Funding transactions in RMB provides
the benefit of reducing currency risks and transaction costs that have
increased due to the volatility of the USD and RMB exchange rate. The programme
is expected to create an additional capacity to spur the growth of RMB
trade finance, particularly via smaller under-represented banks.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered is a leading international banking group. It has operated
for over 150 years in some of the world's most dynamic markets and earns
around 90 per cent of its income and profits in Asia, Africa and the Middle
East. This geographic focus and commitment to developing deep relationships
with clients and customers has driven the Bank’s growth in recent years.
Standard Chartered PLC is listed on the London and Hong Kong stock exchanges
as well as the Bombay and National Stock Exchanges in India.
With 1,700 offices in 70 markets, the
Group offers exciting and challenging international career opportunities
to over 88,000 staff. It is committed to building a sustainable business
over the long term and upholding high standards of corporate governance,
social responsibility, environmental protection and employee diversity.
Standard Chartered’s heritage and values are expressed in its brand promise,
‘Here for good’.
For further information please visit
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and on Twitter @StanChart.
Hear from our experts and comment on
our blog, visit ourviews.standardchartered.com.
About Korea Development Bank
Founded in Seoul, Korea, in 1954, the Korea Development Bank supports the
growth of Korean industry and finances major industrial projects across
Asia and and is rated "Aa3" by Moody’s, "A" Standard
& Poor's, "AA-" by Fitch Ratings. It is owned by Korean government
including indirect ownership. KDB is opening a new chapter in the history
of finance in Korea, and pushing to become the 'Pioneer Bank of Asia'.
It provides a full range of financial services and has more than 2,100
employees. For more information, visit www.kdb.co.kr.
About Swiss Re
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance
and other insurance-based forms of risk transfer. Dealing direct and working
through brokers, its global client base consists of insurance companies,
mid-to-large-sized corporations and public sector clients. From standard
products to tailor-made coverage across all lines of business, Swiss Re
deploys its capital strength, expertise and innovation power to enable
the risk-taking upon which enterprise and progress in society depend. Founded
in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network
of over 60 offices globally and is rated "AA-" by Standard &
Poor's, "Aa3" by Moody's and "A+" by A.M. Best. Registered
shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed
on the SIX Swiss Exchange and trade under the symbol SREN. For more information
about Swiss Re Group, please visit: www.swissre.com
or follow us on Twitter @SwissRe.