1

GLOBALTRADE FINANCEPROGRAMMark Rozanski Europe/CIS Regional HeadApril 2009

Global Trade Finance Program

GTFP helps facilitate trade and manage trade risk through a global network of over 300 trade finance banks

• Key Features:

IFC umbrella guarantee covers country and commercial

risk for emerging market trade deals

AAA rated: Basel II benefits

Responsive: dedicated trade team providing same-day

transaction coverage

Flexible: Up to 100% cover

3

GTFP Program Features

• Covers all private sector trade transactions

importer must be majority privately owned

• Covers all goods in accordance with IFC’s exclusion list

• SWIFT based guarantee structured as SBLC under UCP 600

• Payable after 15 days of presenting claim

• Commercial pricing

• Dedicated IFC trade finance team providing global coverage

4

GTFP Open For Business and Growing

FY2007 FY2008 FY2009(9 months)

Program Ceiling $500 million $ 1 billion $ 3 billion

Issuing Banks (cumulative)

75 banks 38 countries

113 banks53 countries

150 banks74 countries

Confirming Banks (cumulative)

106 144 169

No. of Gtees (p.a.) 564 1,008 1,232

Volume ($ billion) 0.77 1.45 1.58

Impact Of Crisis Reflected In GTFP Activity

Monthly Volume FY2008 and FY2009

GTFP Trade Instruments

6

67%

28%

4%

1%

Bid andPerformanceBonds

Bills ofExchange

AdvancePayment

Post-ImportFinance

Pre-ExportFinance

Letters ofCredit

Cumulative volume: US$4B

7

Transactions By Country Profile(country ranking by US$ Volume for FY09)

Export Countries1. Brazil

2. China

3. Argentina

4. Russia

5. USA

6. Australia

7. Switzerland

8. Japan

9. UAE

10. United Kingdom

11. Turkey

12. Spain

13. Germany

14. Portugal

15. Netherlands

16. Singapore

17. Uruguay

18. Qatar

19. Korea

20. Kazakhstan

Import Countries1. Nigeria

2. Pakistan

3. Brazil

4. USA

5. Lebanon

6. United Kingdom

7. Angola

8. Russia

9. Vietnam

10. Bangladesh

11. Saudi Arabia

12. Germany

13. Switzerland

14. Kenya

15. Jordan

16. Ecuador

17. Argentina

18. Netherlands

19. Kazakhstan

20. UAE

8

Transactions By Product Class

AGRICULTURAL PRODUCTS, FERTILIZER AND

FOODSTUFF28%

INDUSTRIAL GOODS & MACHINERY

16%

IRON & STEEL9%

OIL & GAS22%

COMMUNICATIONS, EQUIPMENT & SOFTWARE

2%

PLASTIC & RUBBER3%

AUTOMOTIVE & PARTS9%

CONSTRUCTION MATERIAL AND SERVICES

2%

TEXTILES & LEATHER5%

CONSUMER GOODS4%

9

How GTFP Works: Import L/C Transaction

IFC Guarantee

Goods

ExporterInt’l

Bank(Confirming)

Payment

Importer

InternationalFinance

Corporation

Confirm

L/C

Documents

Request

L/C Issuance

Payment

Documents

Payment

Documents

LocalBank

(Issuing)

L/C in favor of exporter

10

Import Financing: Mobile phones from Finlandto Russia

• L/C issued by Russian Bank

• Confirmed and post-financed by Finnish Bank

• Tenor: 6 months

• Value: €7.7M

• IFC Coverage: 50%

FinlandRussia

11

Import Financing: Cars from Slovakia to Ukraine

• LC issued by a Ukrainian Bank

• Confirmed by an American Bank

• Tenor: 5 months

• Value: US$2.8M

• IFC Coverage: 85%

SlovakiaUkraine

12

How GTFP Works: Pre-Export Finance

IFC Gtee

Goods

ImporterInternational

BankExporter

Pre-export Financing Pre-export Funding

LocalBank

Request

Pre-export Advance

SBLC/ PN for

Pre-export Funding

RequestIFC Gtee for Pre-Export

Loan

InternationalFinance

Corporation

13

US$6 million US$6 million

Standby L/CStandby L/C

100% Gtee100% Gtee

Pre-Export Financing: Fish From Russia to UK

US BankUS BankRussian BankRussian Bank

UKRussia

14

CIS Exports Supported Through GTFP

Sunflower Oil from RussiaTo LebanonLetter of CreditSwiss Confirming BankTenor: 3 monthsUS$2M (100%)

Tires from RussiaTo KazakhstanTrade Facility LetterUS Confirming BankTenor: 13 monthsUS$15.7M (64%)

Steel Products from RussiaTo China/France/FinlandPre-Export LoanUS Confirming BankTenor: 6 monthsUS$10M (100%)

Aluminum from UkraineTo TanzaniaLetter of CreditGerman Confirming BankTenor: 7 monthsUS$375K (100%)

15

GTFP Transaction Examples

NigeriaAdvance Payment Gtee

Construction of Power Plant

Japanese Engineering Co.

Confirming Bank in UK

US$ 11 million (100%)

JordanLetter of Credit

Auto parts to Iraq

Confirming Bank in UAE

Tenor: 6 months

US$ 9.8 million (40%)

MongoliaLetter of Credit

Tractors from USA

Confirming Bank in USA

Post-import financing for 2 yrs

US$ 0.9 million (100%)

KazakhstanLetter of Credit

Baby food from Switzerland

Confirming Bank in Canada

Tenor: 12 months

US$ 4.8 million (100%)

Sri LankaBid Bond

Speed Boats to Oman

Confirming Bank in Oman

Tenor: 14 months

US$ 2 million (100%)

NigeriaDocumentary Collection

Rice, Pharma, Tyres, ACs Confirming Bank in UK

Discount Accepted B/E

US$ 4.3 million (100%)

LebanonIrrevocable Reimbursement Undertaking

Construction Machinery

Confirming Bank in Austria

US$ 11 million (85%)

JordanStandby LC

Construction Project in UAE

Confirming Bank in UAE

Post-shipment export financing

US$ 7.5 million (100%)

RussiaPre-export financing

Pork meat from Brazil

Confirming Bank (Funding Bank) in Germany

US$ 1 million (50%)

PakistanLetter of Credit

Fertilizer from Tunisia

Confirming Bank in UK

Tenor: 6 months

US$ 7.2 million (70%)

YemenLetter of Credit

Rice from Pakistan

Confirming Bank Germany

Tenor: 6 months

US$ 0.75 million (100%)

ArgentinaPromissory Note

Pre-export financing

Confirming Bank in USA

Tenor: Up to 6 months

US$ 23 million (100%)

LebanonBid Bond

Construction Project in Qatar

Confirming Bank in UAE

Tenor: 3 Months

US$ 2.7 million (85%)

NigeriaPerformance Bond

Supply of methanol (5 Mths)

Confirming Bank in South Africa

US$10 million (100%)

Sierra LeoneLetter of Credit

Telecom Cables from Spain

Confirming Bank in Spain

Tenor: 3 Months

US$ 0.39 million (100%)

MaltaDiscount against Acceptance of LC dox (Third Bank LC)

Machines to West Africa

Confirming (Discounting) Bank in China

US$ 0.3 million (100%)

16

GTFP Issuing Bank Coverage

AFRICA27 countries

44 banks

LATIN AMERICA AND CARIBBEAN

15 countries 37 banks

E. EUROPE/CENTRAL ASIA12 countries

25 banks

ASIA11 countries

23 banks

MIDDLE EAST & NORTH AFRICA

9 countries 21 banks

150 Banks in 74 countries

17

New Target Country Coverage

Europe / CIS•Estonia•Latvia•Lithuania•Romania•Serbia•Uzbekistan

Asia•Philippines•Maldives•Lao PDR•India

Africa•Cape Verde•Cameroon•Central African Republic•Chad •Ethiopia•Guinea•Comoros

Latin America and Caribbean•Colombia•Guatemala•El Salvador•Chile•Peru•Panama•Jamaica

Mid-East/N.Africa•Iraq•Morocco•Tunisia•Libya

18

GTFP Confirming Banks

Top Confirming Banks (by US$ volume FY09)

162 Banks in 75 countries

1. La Caixa

2. BNP Paribas

3. JP Morgan Chase

4. Commerzbank/Dresdner

5. Standard Chartered

6. Deutsche Bank

7. Intesa Sanpaolo

8. Citibank

9. Wachovia

10. Commonwealth Bank Australia

19

GTFP Documentation

• Two GTFP Template Agreements– Issuing Bank Agreement– Confirming Bank Agreement

• Streamlined “framework” structure

• Includes SWIFT templates for application and issuance of IFC’s standbys

• Banks can join both as Issuing and Confirming Banks

• Financial covenants as required for Issuing Banks– Negotiated following IFC credit review and due diligence/KYC

20

Using GTFP

• How to use GTFP:

– Check our website: www.ifc.org/GTFP for country and bank coverage

– Contact your bank or your correspondents to start a transaction

21

Our Website

www.ifc.org/gtfp