BAKU, Azerbaijan, November 7. The International Finance Corporation (IFC), the World Bank Group’s private sector arm, and Crédit Agricole CIB based in France announced a Significant Risk Transfer (SRT) structure covering a $2 billion portfolio, Trend reports via IFC.
IFC has provided a $95 million financial guarantee for Credit Agricole CIB that will help originate new trade finance commitments for emerging markets over the next years. This innovative structure frees up capital that Crédit Agricole CIB will redeploy in order to achieve this objective.
The project will strengthen financial connectivity between international investors and emerging market banks, supporting supply chain continuity and cross-border commerce. Enhanced trade finance will directly benefit exporters, importers, and SMEs — the backbone of economic activity in EMDEs — leading to tangible job creation and higher income levels.
In a potential second phase of this project, a leading global investor would assume a portion of IFC’s exposure, with further participation by private investors in future SRT transactions implemented by IFC.
The project benefits from Crédit Agricole CIB’s long-standing experience and track record in SRT transactions with a protected portfolio of Trade Finance and Corporate facilities for EM-related exposures and redeployment objectives jointly defined with IFC.