IFC, HSBC launch $1b trade finance facility

The International Finance Corporation (IFC) and The Hongkong and Shanghai Banking Corporation Limited (HSBC) have launched a $1 billion risk-sharing facility to boost trade finance in 20 emerging markets across Africa, Asia, Latin America, and the Middle East.

The facility, part of IFC’s Global Trade Liquidity Programme (GTLP), aims to narrow the $2.5 trillion global trade finance gap by equally sharing risks on trade-related assets held by emerging-market banks.

The initiative seeks to enhance cross-border trade, support critical industries, and foster economic growth in regions most in need. IFC Vice President Mohamed Gouled highlighted trade finance as a driver of development, while HSBC’s Aditya Gahlaut emphasised its importance for job creation and sustainability.

GTLP, which has facilitated over $80 billion in trade volume across 74 emerging markets since inception, continues to strengthen financial institutions and supply chains globally.

Attribution: IFC

Subediting: M. S. Salama