Trade and Investment Tools
from the World Bank/IFC
David Fulton
Director of Business Liaison
Office of the U.S. Executive Director
World Bank Group
World Bank/IFC Global Trade Finance Program

GTFP provides confirming banks a guarantee to cover
payment risk on banks in the emerging markets. These
guarantees are transaction-specific and apply to:

 letters of credit
 trade-related promissory notes and bills of exchange
 bid and performance bonds
 advance payment guarantees
 suppliers credits for the import of capital goods
World Bank/IFC Global Trade Finance Program

    Bank of America

    Bank of New York
                         There are hundreds of banks
    Citi
                         in the GTFP
    Cobank              program, including many in
    Fifth Third Bank    the United States. The
                         program helps provide risk
    JP Morgan
                         coverage for transactions in
    PNC Bank            challenging markets.
    US Bank

    Wells Fargo
World Bank/IFC Global Trade Finance Program

  Since 2005, GTFP has provided $504 million in
  guarantees for 328 export transactions from the
  U.S.
     •Average transaction:         Computers
         $1.5 million              Cotton

                                   HVAC
     •Median transaction:
        $298,000                   Guitars

                                   Handbags
     •Smallest transaction:
        $1,307                     Trucks

                                   Food products
     •Largest transaction:
         $60 million               Fertilizer
World Bank/IFC Global Trade Finance Program


   LC issued by a Bangladeshi Bank
   Confirmed by a US Bank
   Tenor: 8 months
   Value: $1.4M
   IFC Covers 64%
                                         Bangladesh
                               USA
World Bank/IFC Global Trade Finance Program

•LC issued by a Nigerian Bank
•Confirmed by a US Bank
•Tenor: 7 months
•Value: $10M
•IFC Covers 33%

                                      Nigeria
                                USA
World Bank/IFC Investment Finance




IFC provides a broad range of products to promote
private sector engagement and entrepreneurship
in developing markets.
World Bank/IFC Investment Finance

         Senior                       Structured                        Mezzanine                Private
          Debt                         Finance                           Finance                 Equity

• On-lending                     • Partial credit                • Convertible debt         • Common shares
                                   guarantees
• Liquidity management                                           • Subordinated debt        • Preferred shares
                                 • Securitization
• Acquisition financing                                          • Other Tier II
                                 • Bond underwriting               instruments
• Warehousing facilities
                                 • Local Currency
• Syndicated loans
                                   financing


                       Global Trade                          Advisory                         Sustainable
                     Finance Program                         Services                           Finance

          • $5 billion program                      • Corporate governance             • Carbon finance
          • Guarantees to issuing banks             • Risk management                  • Renewable energy
          • 174 issuing banks in 77                 • Small and medium business        • Supply chain financing
            countries                                 banking                          • Corporate governance
          • 186 confirming banks in 83              • Housing finance                    financing
            countries
                                                    • Energy efficiency finance
          • $579 million of issued
            guarantees in first 12 months
World Bank/IFC Investment Finance

Shoprite Holdings Ltd. (“Shoprite” or “the
Company”) is a food retail sector leader in the
Republic of South Africa. Shoprite is implementing
a program to finance and expand its operations in
the Republic of Angola (the “Project”). The Project
includes the construction of modern retail stores in
Angola, as well as the financing of the
refurbishment and expansion of the Company’s
existing retail facilities in that country.
World Bank/IFC Investment Finance

IFC is considering an equity investment in Viet
Phu Payment Corporation (“Mobivi”) up to $2
million in preferred shares to support the Company
to expand its services within Vietnam. The
Company provides e-payment platform and
network for real-time transactions on any online
and mobile platforms, targeting both corporate and
retail users
World Bank/IFC Investment Finance

Phoenix Petroleum Philippines Inc. is engaged in
the business of wholesale and retail trading of
refined petroleum products, lubricants and other
chemical products, and the operation of oil depots
and storage facilities mainly in southern
Philippines. IFC is considering financing up to $10
million to fund the Company’s corporate
investment program to expand its distribution and
retail service station networks.
David Fulton
Advisor & Director of Business Liaison
Office of the U.S. Executive Director
World Bank Group
dfulton@worldbank.org

David fulton

  • 1.
    Trade and InvestmentTools from the World Bank/IFC David Fulton Director of Business Liaison Office of the U.S. Executive Director World Bank Group
  • 2.
    World Bank/IFC GlobalTrade Finance Program GTFP provides confirming banks a guarantee to cover payment risk on banks in the emerging markets. These guarantees are transaction-specific and apply to:  letters of credit  trade-related promissory notes and bills of exchange  bid and performance bonds  advance payment guarantees  suppliers credits for the import of capital goods
  • 3.
    World Bank/IFC GlobalTrade Finance Program  Bank of America  Bank of New York There are hundreds of banks  Citi in the GTFP  Cobank program, including many in  Fifth Third Bank the United States. The program helps provide risk  JP Morgan coverage for transactions in  PNC Bank challenging markets.  US Bank  Wells Fargo
  • 4.
    World Bank/IFC GlobalTrade Finance Program Since 2005, GTFP has provided $504 million in guarantees for 328 export transactions from the U.S. •Average transaction:  Computers $1.5 million  Cotton  HVAC •Median transaction: $298,000  Guitars  Handbags •Smallest transaction: $1,307  Trucks  Food products •Largest transaction: $60 million  Fertilizer
  • 5.
    World Bank/IFC GlobalTrade Finance Program  LC issued by a Bangladeshi Bank  Confirmed by a US Bank  Tenor: 8 months  Value: $1.4M  IFC Covers 64% Bangladesh USA
  • 6.
    World Bank/IFC GlobalTrade Finance Program •LC issued by a Nigerian Bank •Confirmed by a US Bank •Tenor: 7 months •Value: $10M •IFC Covers 33% Nigeria USA
  • 7.
    World Bank/IFC InvestmentFinance IFC provides a broad range of products to promote private sector engagement and entrepreneurship in developing markets.
  • 8.
    World Bank/IFC InvestmentFinance Senior Structured Mezzanine Private Debt Finance Finance Equity • On-lending • Partial credit • Convertible debt • Common shares guarantees • Liquidity management • Subordinated debt • Preferred shares • Securitization • Acquisition financing • Other Tier II • Bond underwriting instruments • Warehousing facilities • Local Currency • Syndicated loans financing Global Trade Advisory Sustainable Finance Program Services Finance • $5 billion program • Corporate governance • Carbon finance • Guarantees to issuing banks • Risk management • Renewable energy • 174 issuing banks in 77 • Small and medium business • Supply chain financing countries banking • Corporate governance • 186 confirming banks in 83 • Housing finance financing countries • Energy efficiency finance • $579 million of issued guarantees in first 12 months
  • 9.
    World Bank/IFC InvestmentFinance Shoprite Holdings Ltd. (“Shoprite” or “the Company”) is a food retail sector leader in the Republic of South Africa. Shoprite is implementing a program to finance and expand its operations in the Republic of Angola (the “Project”). The Project includes the construction of modern retail stores in Angola, as well as the financing of the refurbishment and expansion of the Company’s existing retail facilities in that country.
  • 10.
    World Bank/IFC InvestmentFinance IFC is considering an equity investment in Viet Phu Payment Corporation (“Mobivi”) up to $2 million in preferred shares to support the Company to expand its services within Vietnam. The Company provides e-payment platform and network for real-time transactions on any online and mobile platforms, targeting both corporate and retail users
  • 11.
    World Bank/IFC InvestmentFinance Phoenix Petroleum Philippines Inc. is engaged in the business of wholesale and retail trading of refined petroleum products, lubricants and other chemical products, and the operation of oil depots and storage facilities mainly in southern Philippines. IFC is considering financing up to $10 million to fund the Company’s corporate investment program to expand its distribution and retail service station networks.
  • 12.
    David Fulton Advisor &Director of Business Liaison Office of the U.S. Executive Director World Bank Group [email protected]