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According to the Bank’s website, the proposed project is an unfunded risk-sharing facility with Standard Chartered Bank (“SCB”) in a portfolio of supply chain finance-related assets for up to US$500 million with IFC participation of up to US$250 million. The Project falls under the Global Supply Chain Finance (GSCF) Program, launched by the International Finance Corporation (IFC) in December 2022. GSCF supports trade in the emerging markets by providing funded or unfunded risk participation in partner banks’ facilities. IFC risk participation is up to 50% of eligible assets in the facility (up to $250 million for IFC’s own account) and will mobilize SCB for the balance. This Facility aims to further improve access to Supply Chain Finance (SCF) in Emerging Markets (EM)s, including providing pre-shipment finance, bringing working capital benefits to local suppliers.
The E&S risks are expected to be medium and, as such, the project is categorized as FI-2 according to IFC's Sustainability Policy.
The project will support short-term financing with a maximum tenor of 18 months to SCB corporate clients (Buyers) in agribusiness, manufacturing, and other sectors globally. Potential environmental and social risks (E&S) and issues associated with supply chain finance activities are typically associated with production of goods and commodities, the adequacy of a functioning supply chain management system and management of E&S -related reputational risks.
The proposed project will be in an amount up to US$500 million with underlying portfolio of supply chain finance (SCF) assets that will be risk-shared by Standard Chartered and IFC on a pre-agreed basis, with a IFC participation of up to US$250 million.
Standard Chartered is a leading international banking group, with a presence in 53 of the world’s most dynamic markets. Its purpose is to drive commerce and prosperity through its unique diversity, and its heritage and values are expressed in the brand promise, here for good. Standard Chartered PLC is listed on the London, Hong Kong, Bombay (Mumbai) and India’s National stock exchanges.
Standard Chartered Bank
Nicolas Langlois
Global Head of Trade Distribution
+65 6596 4121
nicolas.langlois@sc.com
Boulevard, Level 22 (018981) Singapore
https://www.sc.com
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