HSBC and IFC Launch $1 Billion Trade Finance Program for Emerging Markets

Forex - The International Finance Corporation (IFC), affiliated with HSBC and the World Bank, will jointly finance commercial transactions of up to $1 billion to help fill the funding gap in trade financing in emerging markets.

According to a joint statement by the IFC and HSBC, they will equally share the risk on a portfolio of trade-related assets held by emerging market banks in 20 countries across Africa, Asia, Latin America, and the Middle East.

The agreement aims to support cross-border trade and boost exports in critical sectors, as economies face geopolitical tensions and trade barriers that could create uncertainty for supply chains and threaten economic growth.

Riccardo Puliti, Vice President of the Asia Pacific Region at IFC, stated, "There is a significant and ongoing trade finance gap in developing markets in the Asia-Pacific region."

Aditya Gahlaut, Co-Head of HSBC's Asia Pacific Global Trade Solutions, remarked, "Reducing the trade finance gap and improving access to finance will be central to promoting growth and sustainability in supply chains across Asia and the region."

The new facility is established under the IFC's Global Trade Liquidity Program, which has supported over $80 billion in global trade volume with nearly 30,000 transactions over the past 20 years.