Trade and Investment Toolsfrom the World Bank/IFCDavid FultonDirector of Business LiaisonOffice of the U.S. Executive DirectorWorld Bank Group
World Bank/IFC Global Trade Finance ProgramGTFP provides confirming banks a guarantee to coverpayment risk on banks in the emerging markets. Theseguarantees are transaction-specific and apply to: letters of credit trade-related promissory notes and bills of exchange bid and performance bonds advance payment guarantees suppliers credits for the import of capital goods
World Bank/IFC Global Trade Finance Program Bank of America Bank of New York There are hundreds of banks Citi in the GTFP Cobank program, including many in Fifth Third Bank the United States. The program helps provide risk JP Morgan coverage for transactions in PNC Bank challenging markets. US Bank Wells Fargo
World Bank/IFC Global Trade Finance Program Since 2005, GTFP has provided $504 million in guarantees for 328 export transactions from the U.S. •Average transaction: Computers $1.5 million Cotton HVAC •Median transaction: $298,000 Guitars Handbags •Smallest transaction: $1,307 Trucks Food products •Largest transaction: $60 million Fertilizer
World Bank/IFC Global Trade Finance Program LC issued by a Bangladeshi Bank Confirmed by a US Bank Tenor: 8 months Value: $1.4M IFC Covers 64% Bangladesh USA
World Bank/IFC Global Trade Finance Program•LC issued by a Nigerian Bank•Confirmed by a US Bank•Tenor: 7 months•Value: $10M•IFC Covers 33% Nigeria USA
World Bank/IFC Investment FinanceIFC provides a broad range of products to promoteprivate sector engagement and entrepreneurshipin developing markets.
World Bank/IFC Investment Finance Senior Structured Mezzanine Private Debt Finance Finance Equity• On-lending • Partial credit • Convertible debt • Common shares guarantees• Liquidity management • Subordinated debt • Preferred shares • Securitization• Acquisition financing • Other Tier II • Bond underwriting instruments• Warehousing facilities • Local Currency• Syndicated loans financing Global Trade Advisory Sustainable Finance Program Services Finance • $5 billion program • Corporate governance • Carbon finance • Guarantees to issuing banks • Risk management • Renewable energy • 174 issuing banks in 77 • Small and medium business • Supply chain financing countries banking • Corporate governance • 186 confirming banks in 83 • Housing finance financing countries • Energy efficiency finance • $579 million of issued guarantees in first 12 months
World Bank/IFC Investment FinanceShoprite Holdings Ltd. (“Shoprite” or “theCompany”) is a food retail sector leader in theRepublic of South Africa. Shoprite is implementinga program to finance and expand its operations inthe Republic of Angola (the “Project”). The Projectincludes the construction of modern retail stores inAngola, as well as the financing of therefurbishment and expansion of the Company’sexisting retail facilities in that country.
World Bank/IFC Investment FinanceIFC is considering an equity investment in VietPhu Payment Corporation (“Mobivi”) up to $2million in preferred shares to support the Companyto expand its services within Vietnam. TheCompany provides e-payment platform andnetwork for real-time transactions on any onlineand mobile platforms, targeting both corporate andretail users
World Bank/IFC Investment FinancePhoenix Petroleum Philippines Inc. is engaged inthe business of wholesale and retail trading ofrefined petroleum products, lubricants and otherchemical products, and the operation of oil depotsand storage facilities mainly in southernPhilippines. IFC is considering financing up to $10million to fund the Company’s corporateinvestment program to expand its distribution andretail service station networks.
David FultonAdvisor & Director of Business LiaisonOffice of the U.S. Executive DirectorWorld Bank Groupdfulton@worldbank.org