GTLP UniCredit (IFC-38086)

Regions
  • World
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 27, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
UNICREDIT SPA
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Apr 7, 2016


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Project Description

According to IFC website, the project falls under the Global Trade Liquidity Program, an innovative and well received trade finance program launched by the International Finance Corporation in 2009. GTLP provides liquidity or guarantees to global or regional banks with large financial institution networks. Through GTLP, banks are able to grow their credit limits, manage risk, and support trade in the emerging markets.

The project involves establishing a funded risk sharing facility with UniCredit SpA for up to US$500 million to share the risk on a portfolio of emerging market issuing banks.

People Affected By This Project

The Facility is expected to have the following development impacts:
- Increased access to finance: The project will increase access to finance for the Emerging Market importers and exporters. Improved availability of credit is expected to benefit local enterprises (producers and importers, including SMEs) along the value chain and therefore support growth, sustain employment, and encourage the generation of higher incomes.
- Strong demonstration effect through partnership with a major international bank and by mobilizing other program participants to support trade finance, the Project will have a strong demonstration effect by encouraging greater local/regional bank participation in EM trade finance thereby increasing access to finance for local importers and exporters.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

UniCredit is the largest banking group in Italy, established in October 1998 through the merger of Credito Italiano and Unicredito SpA followed by a series of acquisitions. The Bank adopted its current name in January 2008. The Bank operates across a wide range of sectors including retail and small business, corporate and investment banking, asset management, insurance and trading and private banking. With operations in 17 countries, 7,934 branches, and 144,000 employees the Bank is a competitive global bank, leading markets in Central and Eastern Europe.

As of December 31 2015, the Bank had total assets of EUR860.4 billion, and total equity of EUR50 billion. UniCredit is listed on Borsa Italiana and has a market capital of EUR 22.4 billion. The two major shareholders of UniCredit are Aabar Luxembourg S.A.R.L. Fondazione Cassa di Risparmio Verona, Vicenza, Belluno e Ancona with a 5.039% and 3.460% stake in the Bank respectively. All other shareholders own less than 5.0% in the Bank. UniCredit is rated BBB- by S&P and Baa1 by Moody’s.

Contact Information

Project Contact: Antonio Ebale 
Senior Manager, Head of Trade Risk Management & Forfaiting Italy
Global Transaction Banking, Unicredit S.p.A.
Office Address: Piazza Gae Aulenti, UniCredit Tower – Torre B - Piano 6, 20154 Milan, Italy

Email Address:Antonio.Ebale@unicredit.eu

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/