Standard Chartered and OPEC Fund enhance Trade Finance Risk Participation Programme

Standard Chartered and the OPEC Fund for International Development, a global multilateral development financial institution, today announced the enhancement of their existing Trade Finance Portfolio Risk Participation Programme which will help facilitate trade flows of over USD1 billion annually across Asia, the Middle East, Latin America and Africa.

The enhanced risk participation programme will drive trade flows and encourage increased trade financing in emerging and developing economies. By improving trade capacity, the facility will further narrow the global trade finance gap – estimated to be USD1.7 trillion in 20201 – especially at a time when economies around the world are recovering from the COVID-19 pandemic and coping with supply chain disruptions.

The Trade Finance Portfolio Risk Participation Programme has been in place for over 10 years and builds on Standard Chartered’s presence in emerging markets and leading trade finance capabilities, as well as OPEC Fund’s commitment to enhance the availability of trade finance in some of the most challenging credit markets.

OPEC Fund Director-General Abdulhamid Alkhalifa said: “Lack of access to trade finance is a major obstacle for developing countries as they cannot join global trade flows and boost economic growth and resilience. Overcoming this obstacle is more urgent than ever as the COVID-19 pandemic has caused serious disruptions to global supply chains. Joining forces with Standard Chartered will allow us to significantly deepen our impact in keeping vital trade going and making it accessible for everyone.”

Nicolas Langlois, Global Head of Trade Distribution, Standard Chartered, said: “As a leading trade bank, it is our goal to connect the capital and expertise needed to facilitate global trade in a more equitable and sustainable manner. We are committed to doing so using the power of our network and on-the-ground presence, particularly in this critical period when we are seeing an increasing need for credit as businesses and economies adapt to today’s challenging operating environment. This enhanced capacity strengthens our long-standing partnership with OPEC Fund and demonstrates both organisation’s continuous focus in encouraging global trade and supporting local economies.”