Standard Chartered Bank, IFC and FMO Commit Collective US$177 Million Trade Finance Facilities for Indonesia and Bangladesh
Standard Chartered Bank, announced that, together with the World Bank Group’s International Finance Corporation (IFC) and the Dutch Development Agency (FMO), it has committed a total of US$177 million for two separate trade finance facilities.Under the first deal, Standard Chartered Bank (SCB) and IFC will help stimulate recovery in Indonesia’s international trade flows through a new US$125 million trade finance facility that will provide short-term financing to private-sector Indonesian importers. This five-year revolving facility will help improve access to trade finance for Indonesian businesses, by providing additional letter of credit confirmation lines to the selected local commercial banks. The facility will initially include six local banks, Bank Mandiri, Bank International Indonesia, Bank Central Asia, Bank Danamon, Bank CIC and Bank NISP, but may be expanded to include other Indonesian banks that meet IFC’s credit quality standards. IFC will guarantee 40 percent of each transaction.The second deal, a US$52 million trade enhancement facility for Bangladesh, committed by SCB, IFC and FMO, is designed to benefit private sector importers and exporters, mostly small and medium enterprises. Under the terms of the two-year revolving facility, IFC and FMO will jointly guarantee SCB up to $26 million of the total facility amount.