Standard Chartered has agreed with IFC (International Financial Corporation), a member of the World Bank Group, to continue their trade finance partnership under the Global Trade Liquidity Program (GTLP) with a total investment of an additional US$1 billion.

The Global Trade Liquidity Program is a portfolio-based trade finance initiative that combines the efforts of IFC and commercial utilization banks (UBs), such as Standard Chartered, to boost support for trade finance in emerging markets.

Aimed at boosting global trade in emerging markets by increasing the amount of financing available, the third series of the GTLP comes at a time when many global banks are pulling back their support due to increasing compliance costs and higher capital requirements for trade under Basel III.

Standard Chartered will originate a portfolio of trade finance transactions of up to US$1 billion through emerging market issuing banks (EMIBs) with the IFC participating up to 50% of the portfolio or up to US$500 million. These EMIBs will further extend financing to local importers and exporters in their presence countries to promote global trade.

Alex Manson, global head, transaction banking, Standard Chartered said “through GTLP, we expect to provide more than US$5 billion to support trade across our footprint over the next three years”.