Standard Chartered Risk Sharing Facility

Rest of the World Financial services

Our investment

In 2013, CDC and Standard Chartered Bank signed a $75 million risk participation arrangement to increase the availability of trade finance in developing countries. Following its successful implementation, the deal was extended several times in subsequent years, taking the total agreement to $400 million.

The agreement has enabled us to support more than 80 local banks in undertaking their trade finance business. The programme spans 10 countries in sub-Saharan Africa and South Asia and is still growing its geographical footprint.

Expected impact

Trade finance supports the supply chain of many industries and is key to the success of any developing economy. Since the global financial crisis, growing businesses in Africa and South Asia have struggled to access the finance they need from local banks to help them expand and reach international markets.

Our arrangement with Standard Chartered aims to boost the availability of trade finance in some of Africa and South Asia’s poorest countries. This will help to generate up to $1 billion of additional trade, supporting job creation, boosting exports and enabling regional economic growth.

The agreement will support local banks in Standard Chartered’s network in Africa and South Asia (excluding South Africa and India) to offer trade finance products to their business clients. These products, such as letters of credit for import and export and documents against payment, are crucial to businesses that rely on trade for growth and job creation.

Environmental and social aspects

We worked closely with SCB offices to ensure that international environmental and social standards were met in the delivery of each of the loans provided via the facility.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Rest of the World
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Financial services
Website:
https://www.sc.com/en/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Debt
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
May 2013
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$400m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
United Kingdom