Global Trade Finance Program Latin America and the Caribbean – October 2012

Awarded Best Overall

MFI/DFI and Best DFI Africa

GTFP in LAC

The GTFP bank network connects approved financial institutions in emerging markets (Issuing Banks) with major international and regional banks (Confirming Banks) for the execution of trade finance transactions under 100 % IFC GTFP coverage.

Door opener opportunity for Issuing Banks to build working partnerships with a vast number of confirming banks via a global network of GTFP Confirming Banks.

Unequal opportunity for International and Regional banks to expand its trade finance portfolio in LAC with triple A coverage.

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Cumulative Program Statistics in LAC since Sept. 2005 (as of September 2011)

TOTAL # / US$ OF GTEES 8,398 / $6.3 Billion

# OF DEFAULTS ZERO

LAC Opportunities in South to South Trade Promising opportunities in Asia, Africa, and Middle East.

Intra-Latin America trade remains the main type of south to south trade in LAC, 47% of the total south to south trade .

Growing importance of LAC-Asia bilateral trade mainly with China, Japan, and South Korea for the trade of goods like electrical household appliances, vehicles, agricultural goods, and heavy machinery. 30% of the total south to south trade.

During the last decade, LAC-Middle East bilateral trade tripled, currently at 3 % of the total south to south trade. With limited growth in the developed markets, corporate Middle East leaders are increasingly looking to Latin America. LAC-Middle East bilateral trade focuses on the trade of transportation equipment, beef, soybeans, sugar, corn, engineering services, urea, coal and petroleum. The largest LAC trade partners of the Middle East are Brazil and Argentina.

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LAC-Africa bilateral trade growing but still very limited at

3% of the total south to south trade.

South to south cooperation between LAC and Africa is expected to grow at a higher paste for the coming 10 years in the areas of Agriculture, Energy, Water Management, Water Management, Health & Education, Transportation, Urbanism, and Tourism.

Main LAC trade partners in Africa are South Africa, Algeria, Nigeria, Morocco, Tunisia, and Senegal and the growth potential focuses on 28 African countries with diplomatic representation in LAC.

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LAC Opportunities in South to South Trade Promising opportunities in Asia, Africa, and Middle East.

TRADE FUNDED TRANSACTIONS

Trade Funded Transactions (Pre-Export Financing and Post-Import

Financing) represent the most important GTFP product in LAC.

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IFC issues the guarantee in favor of the Confirming Bank.

Goods

Confirming Bank

(International Lender)

Exporter or

Importer

International Finance

Corporation

Requests Financing Issuing Bank (Local)

Requests the disbursement

and issues Promissory

Note instrument.

Consent Swift

Request of IFC

Guarantee Swift.

Executes the disbursement .

Provides Financing

Promissory Note issued by a Honduran Bank

Funded by an American Bank

Tenor: 6 months

Goods: Turbines

Value: $ 10.4M

IFC Covers : 100%

China

Honduras

Post-import financing: Hydroelectric Machinery from China to Honduras

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US $1.5M

Prom Note

100% Gtee

Canadian Bank

BRAZIL

Brazilian Bank

The Netherlands

Pre-export Financing: Ethanol from Brazil to The Netherlands.

Other GTFP LAC Trade Examples

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Post-import financing: Clothing Hydroelectric Machinery from Peru to Argentina PN issued by an Argentine Bank Funded by an American Bank Tenor: 3 months Goods: Clothing Value: US$ 206K IFC Coverage : 100%

Import / Export financing: Vehicles from Asia to Nicaragua / Peanuts from Nicaragua to North America. PN issued by a Nicaraguan Bank Funded by a German Bank Tenor: 5 months Goods: Vehicles and Peanuts Value: US$ 1.75M IFC Coverage : 100%

TRADE UNFUNDED EXAMPLE Confirmed Letter of Credit. 93,500 Laptop Computers for the Sixth grade Panamanian Children from public schools. LC issued by a Panamanian Bank Confirmed by a Portuguese bank Tenor: 2 months Portuguese Exporter. Origin of Goods: China Amount: US$ 19,596,400.00 IFC Coverage : 100%

Supporting Trade in LAC Emerging Markets,

including the poorest developing markets.

Newcomers

1. CIBC, Canada 2. China Construction Bank 3. Fifth Third Bank 4. Banco Popolare di Sondrio 5. Bank of China 6. Unicredit 7. LBBW 8. CaixaBank 9. Sumitomo Mitsui Banking

Corporation 10. LBBW Germany 11. Intesa Sanpaolo NY 12. BB&T 13. NBC Uruguay

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Long time partners

1. Citibank

2. JP Morgan

3. Scotiabank

4. Wells Fargo

5. Rabobank

6. Bank of America

7. Deutsche Bank

8. Commerzbank

9. Standard Chartered

Top Confirming Banks Supporting Funded Trade Transactions in LAC

Opportunities for new Partnerships

In light of the financial crisis and the reduced financing appetite in challenging markets, the availability of emerging market trade finance from International Banks deteriorated by more than US$ 150 billion for LAC. Multilateral participation and risk mitigation in the trade finance sector will continue to be highly important for Confirming Banks, specially for south to south transactions.

South to south trade will continue to grow in line with the increasing contribution of emerging countries in the global economy.

We look forward to closing LAC trade transactions with you !

GTFP LAC Team

Susanne Kavelaar Antonio Alves Karla Lopez Jose Vivanco

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www.ifc.org/GTFP