The Inter-American Development Bank (IDB) and the Standard Chartered Bank (SCB) disbursed the first co-loan of the recently signed Latin American Trade Co-lending Partnership (TCLP). The $10 million, 360-day trade finance loan to Banco Industrial e Comercial S.A. (BICBANCO) will facilitate the flow of consumer goods from Brazil to Germany. This is the first of many trade finance loans expected to be disbursed under the partnership.
The co-lending partnership is a collaborative effort to provide financing to a mutually-agreed list of Latin American and Caribbean banks up to a maximum amount of $200 million on a revolving basis. Both IDB and SCB intend to co-fund trade financing transactions associated with export from or import to an IDB borrowing member country.
In addition, the partnership will help to raise the credit capacity and liquidity of banks in Latin America and the Caribbean and make the process of fundraising simpler through a single drawdown process and a single repayment process for multiple loans.
“IDB is committed to promoting trade in Latin America and the Caribbean and this partnership is a great example of our commitment,” said IDB President Luis Alberto Moreno. “Through the efforts of both IDB and Standard Chartered, the impact of this partnership will be substantial and will bolster continued trade flows, which remain vital to the region’s success.”
“This partnership will help boost trade finance between Latin America and markets in Asia, Africa and the Middle East,” said Anthony Walton, vice chairman of Standard Chartered. “In turn, the loans will support domestic businesses, job creation and private sector development. Standard Chartered is delighted to partner with IDB and promote increased trade flows in the region.”
The Latin American Trade Co-Lending Partnership
The agreement for the Partnership was signed on December 14, 2010 by Luis Alberto Moreno, President of Inter-American Development Bank and Anthony Walton, Vice Chairman of Standard Chartered.
The partnership relies on the public and private sectors to offer stable sources of funding and to extend outreach of trade finance in Latin America and globally. The TCLP will be an efficient means to mitigate the effects of the liquidity crisis and expand trade finance for financial intermediaries and their clients. The TCLP will address the trade finance deficit in Latin America by supporting the financing needs of small, medium and large importers and exporters.
By utilizing IDB’s and SCB’s extensive network, the TCLP will allow banks to borrow on commercial terms with faster turn-around and to meet the needs of under-served trade clients across the globe. The IDB and SCB seek to close the trade financing gap and further trade in LAC by ensuring stable and reliable sources of financing for the region’s many trade finance clients.
The partnership compliments the Financial Markets Division of IDB’s Structured and Corporate Finance Department’s existing trade finance activities, including the Trade Finance Facilitation Program (TFFP).
Standard Chartered
Standard Chartered PLC is a leading international bank, listed on the London, Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in some of the world's most dynamic markets and earns more than 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.
With 1,700 offices in 70 markets, Standard Chartered offers exciting and challenging international career opportunities for more than 80,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity.
Inter-American Development Bank
Established in 1959, the IDB is the largest source of development financing for Latin America and the Caribbean, with a strong commitment to achieve measurable results, increased integrity, transparency and accountability. We have an evolving reform agenda that seeks to increase our development impact in the region. IDB’s Structured and Corporate Department is responsible for non-sovereign guaranteed operations, which include loans and partial credit guarantees for private sector companies and banks, as well as for state-owned enterprises.