Project Description
This summary covers an application by the International Finance Corporation (IFC) to support trade transactions under its Global Trade Finance Program (GTFP), conducted through eligible State-Owned Banks (SOBs) in selected IDA/FCS and emerging market and developing economy (EMDE) countries, for whom IFC will issue guarantees to cover their payment obligations. MIGA would issue Trade Finance Guarantees (TFG) up to 99 percent of the underlying trade transactions to cover IFC against the non-payment risk by SOBs for up to US$0.5 billion until May 2027, with the possibility of an extension beyond that date. The TFGs are to be implemented through IFC’s Global Trade Finance Program (GTFP) platform, under the Trade Finance Guarantee Initiative , a partnership arrangement between IFC and MIGA which was initially Board approved in May 2021 and subsequently in May 2024.
IFC’s Summary of Investment Information (SII) provides additional information on the TFG Framework and the specific SOBs. à See IFC disclosure for partnership program and below for the relevant disclosure links for SOBSs in program
| Host Country | State-Owned Banks | Gross Exposure (US$ million) | Disclosure Link |
Ukraine | (i) “The State Export-Import Bank of Ukraine” Joint Stock Company (“Ukreximbank” JSC). (ii) The Public Joint-Stock Company Joint Stock Bank “Ukrgasbank” (JSB “Ukrgasbank”). (iii) The Joint Stock Company Commercial Bank PrivatBank (“PrivatBank”) | Up to US$20 million | IFC disclosure |
Fiji | Home Finance Company Pte Limited (“HFC Bank”) | Up to US$5 million | IFC disclosure |
Rwanda | Bank of Kigali Plc (“BK”) | Up to US$20 million |
Environmental Categorization
The MIGA-covered facility will support short-term trade transactions. These transactions pose minimal environmental and social (E&S) risks and impacts and as such the project has been categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013). The applicable E&S requirement for this project is the MIGA Exclusion List. Please refer to IFC’s SII for more information on individual transactions.
Development Impact
The MIGA and IFC GTFP partnership is expected to achieve a positive development impact through its facilitation of trade. It is widely acknowledged that trade is a driver of economic productivity and wage growth. Trade supports economic activity and employment directly through the generation of income and liquidity on the back of exports, as well as indirectly by facilitating investment (importation of capital goods and technology), importation of critical goods and goods required for basic economic function, as well as importation of intermediate and consumer goods. Through targeting especially IDA/FCS and other low income EMDE countries, MIGA and IFC intend to support those countries where trade has been most negatively impacted by global economic shocks and where gaps in the provision of trade finance facilities are largest.
