Global Trade Finance Program

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2. Global Trade Finance Program US$ 1 billion Program Delivering: A Global FI network Responsive service: 24 hours Value-added risk mitigation: Africa region, Smaller banks, SME trade, South-South, Post-crisis

3. GTFP’s Responsive Platform Covers all private sector trade transactions importer must be majority privately owned Covers all bona fide trade finance instruments Covers all goods in accordance with IFC’s exclusion list Issues guarantees via SWIFT communication Dedicated trade unit Training and technical assistance provided to Issuing Banks

4. AAA Rated – Basel II benefits Cover country and commercial risk Cover payment risks related to: Import LCs, standby LCs, prom notes, bills of exchange Structured as a Standby LC Commercial pricing Payable after 15 days of claim

5. IFC Guarantees – Trade Instruments Import Letters of Credit Standby Letters of Credit Guarantees IFC covers the obligation of the issuer of the performance bonds, bid bonds, payment/ advance payment gtees Bills of Exchange/ Promissory Notes for Trade Financing IFC covers the obligation of the issuer for pre-export financing or post-import financing extended by a participating Confirming Bank

6. How to use the GTFP Call/Email IFC to discuss txn (availability, terms, pricing etc.) CB or IB sends IFC Gtee Application by SWIFT IB must consent (no silent guarantees) IFC issues the gtee in favor of the CB by SWIFT IFC Gtee Fees charged quarterly and in arrears (Feb 1, May 1, Aug 1, Nov 1) IFC bills the guarantee fee to the CB or IB, based on the agreement between the banks

7. GTFP Program Profile GTFP TRANSACTIONS – 29 mos. Cumulative Program Statistics as of Feb 14, 2008 TOTAL # / $ OF GTEES 1495 / $1.9 B TOTAL TRADE SUPPORTED $2.7 B AVERAGE TENOR 6 months AVERAGE TXN VALUE US$ 800K TXN $ RANGE US$ 7K- 23M TXNS< US$ 1 MIL. 75% TOTAL RISK SHARE BY CBs 28%

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10. League Table: Top 20 Confirming Banks ($) BNP Paribas Wachovia ANZ Citibank American Express Bank Deutsche Bank Intesa Sanpaolo HSBC Commerzbank SMBC DRESDNER FORTIS MASHREQBANK STANDARD CHARTERED NORDEA CAJA MADRID NATIONAL CITY LBBW BK LEUMI UBS DRESDNER FORTIS MASHREQBANK STANDARD CHARTERED NORDEA CAJA MADRID NATIONAL CITY LBBW BK LEUMI UBS

11. 93 Issuing Banks in 53 countries (1)     

12. 93 Issuing Banks in 53 countries (2)     

13. Next phase coverage The next set of banks we are in the process of appraising will be in this set of countries. We plan to double the number of banks with trade lines in the coming years and triple the amount of lines.The next set of banks we are in the process of appraising will be in this set of countries. We plan to double the number of banks with trade lines in the coming years and triple the amount of lines.

14. Typical GTFP Transaction: Import LCs This is a classic import LC transaction. Telecom equipment from the US to Nigeria; palm oil from Malaysia to Kenya; truck spare parts from India to Mongolia The exporter (who can be in any country) doesn’t want the payment risk of the importer in one of our member countries and requests that an LC be opened. The importer’s bank opens it for the benefit of the exporter. The exporter doesn’t know the importer’s bank and doesn’t feel secure so he asks that the LC payment be confirmed by an international bank The international bank is contacted by the local bank, reviews its lines for that bank and may determine that: it has very little capacity left under its lines for that local bank; or is bumping up against its country exposure limit; or can’t accommodate the transaction tenor.…..hence the inquiry to IFC about whether we can guarantee a % of this trade (by SWIFT message) We will look at our line, check the details of the trade, quote a commercially-oriented price for our guarantee, and revert to the bank within 24 hours. This is a classic import LC transaction. Telecom equipment from the US to Nigeria; palm oil from Malaysia to Kenya; truck spare parts from India to Mongolia The exporter (who can be in any country) doesn’t want the payment risk of the importer in one of our member countries and requests that an LC be opened. The importer’s bank opens it for the benefit of the exporter. The exporter doesn’t know the importer’s bank and doesn’t feel secure so he asks that the LC payment be confirmed by an international bank The international bank is contacted by the local bank, reviews its lines for that bank and may determine that: it has very little capacity left under its lines for that local bank; or is bumping up against its country exposure limit; or can’t accommodate the transaction tenor.…..hence the inquiry to IFC about whether we can guarantee a % of this trade (by SWIFT message) We will look at our line, check the details of the trade, quote a commercially-oriented price for our guarantee, and revert to the bank within 24 hours.

15. Pre-Export Financing In cases where an exporter in the emerging markets requires an advance payment, a guarantee could be issued to the confirming bank on behalf of the importer for the amount of the payment. If your client is importing, for example, coffee from Ethiopia or cocoa from Ghana and the exporter requires an advance payment… In cases where an exporter in the emerging markets requires an advance payment, a guarantee could be issued to the confirming bank on behalf of the importer for the amount of the payment. If your client is importing, for example, coffee from Ethiopia or cocoa from Ghana and the exporter requires an advance payment…

16. Successful Transactions - Examples        

17. Successful Transactions - Examples        

18. Successful Transactions - Examples        

19. Successful Transactions - Examples        

20. How to use the GTFP Call/Email IFC to discuss txn (availability, terms, pricing etc.) CB or IB sends IFC Gtee Application by SWIFT IB must consent (no silent guarantees) IFC issues the gtee in favor of the CB by SWIFT IFC Gtee Fees charged quarterly and in arrears (Feb 1, May 1, Aug 1, Nov 1) IFC bills the guarantee fee to the CB or IB, based on the agreement between the banks

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