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DBS, IFC
Singapore-headquartered DBS and IFC, part of the World Bank, have signed a $500 million facility to facilitate capital and trade flows in emerging markets in Asia, Africa, the Middle East and Latin America.
Under the scheme, DBS and IFC will share risk equally on a portfolio of trade-related assets of up to $500 million, DBS said in a statement.
This facility will reduce turnaround times for companies trading with emerging market counterparties and enhance DBS’s ability to support more trade finance such as letters of credit, while more effectively managing risk. .
As part of the agreement, 20 percent of the facility will be allocated to climate-eligible trade transactions, such as trading in renewable energy equipment, energy-efficient equipment, and climate-smart agricultural certified products.
This program is part of IFC’s GTLP. GTLP provides a counter-cyclical solution to the trade finance shortage in emerging markets by supporting bank credit line expansion, risk management, and trade support across underserved and developing markets. This product is designed to provide.
DBS said that despite the important role trade finance plays in economic development, trade finance disparities persist across emerging markets and have been exacerbated in recent years by heightened economic uncertainty. Ta. Small and medium-sized enterprises, which are the direct beneficiaries of loans, will be particularly affected, limiting their ability to participate in global commerce.
In 2023, IFC signed a memorandum of understanding with EnterpriseSG to facilitate financing for Singaporean companies in emerging markets. This is the first financing agreement facilitated under that Memorandum of Understanding.
From left to right: Simon Ong, Global Head of Financial Institutions Group, DBS, Gina Lim, Director of Financial Ecosystem, Enterprise Singapore, and Arnaud Dupoizat, Manager, Financial Institutions Group, IFC East Asia-Pacific.
