DBS & IFC Promote Emerging Market Trade Flows with US$500m Facility
(2 April 2024 – Singapore) DBS and the International Finance Corporation (IFC) have jointly released a US$500 million facility, IFC’s first partnership with a Southeast Asia bank under its Global Trade Liquidity Programme (GTLP).
20 percent of the facility will target climate-eligible trade transactions. The partnership seeks to promote capital and trade flows in emerging markets across APAC, MENA and LatAm.
The facility includes DBS and IFC absorbing risk equally on a portfolio of trade-related assets, greatly enhancing DBS’ capacity to support more trade financing such as Letters of Credit (LCs) with a faster turnaround time for businesses trading with emerging markets counterparts while improving risk management processes. The initiative is designed to help bridge the record US$2.5 trillion global trade finance gap and accelerate economic progress across emerging markets.
“As our trade finance exposure to emerging markets continues to grow at pace, we constantly seek innovative ways to support our clients’ evolving requirements. These include a greater focus on strengthening supply chain resilience, diversifying business models, establishing new markets, and capitalising on the significant increase in emerging markets trading and infrastructure activities. This partnership with IFC enables us to support more clients with much-needed trade financing, catalyse opportunities for emerging markets businesses, and foster a more secure and sustainable global trade ecosystem” commented DBS Group Head of Global Transaction Services Product Management, Sriram Muthukrishnan.
“In today's interconnected world, the importance of supply chains cannot be overstated, as they are the foundation upon which successful businesses and thriving economies are built. We believe that IFC’s partnership with DBS will unlock opportunities for more businesses to reach new markets and expand their operations, fostering economic growth” said IFC Director of Trade and Supply Chain Finance, Nathalie Louat.
Subscribe