Press Release

OFID signs US$500 million Risk Participation Program with Standard Chartered Bank

PR42/2009 October 5, 2009 Istanbul, Turkey
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The OPEC Fund for International Development (OFID) has signed a risk sharing agreement with Standard Chartered Bank to help boost trade, particularly South-South, and to encourage more trade financing to emerging and developing countries. Trade and trade financing have declined as a consequence of unraveling crisis.

OFID and Standard Chartered will implement a program of risk sharing in an amount of US$500 million, equally shared between the two institutions. The agreement will generate an estimated incremental trade of US$2 billion annually.

Eighty banks in 18 emerging and developing countries stand to benefit from the program. The program may be expanded to include more countries and more banks as per demand.

The Director-General of OFID, Mr. Suleiman J. Al-Herbish signed the agreement on behalf of OFID, and Ms. Karen Fawcett, Global Head of Transaction Banking, signed for Standard Chartered.

Mr. Al-Herbish stated that “this program is part of OFID’s strategy of scaling up its support to beneficiary countries to help alleviate their difficulties in accessing credit in these days of credit disruption.” The agreement will build on Standard Chartered’s global network and trade origination capacity. It is in line with OFID’s Trade Finance Facility initiated in 2006 to promote economic development through trade financing and strengthen the financial systems of partner countries.

Ms. Fawcett stated that the agreement and the resulting incremental trade is “an excellent example for multilateral agencies and private sector financiers looking for a well-structured method for supporting trade originating from developing economies in these difficult times”. Mr. Al-Herbish stated further that “this program is crucial to our partner countries, and it is particularly responsive to the current crisis and its effects on developing countries”.

For OFID, trade financing is a natural progression in its efforts to align with the demand of its partner countries. Trade financing complements OFID’s broadening range of products, which include long- and medium-term project and program financing in the public and private sectors.

About the OPEC Fund for International Development (OFID)

The OPEC Fund for International Development (OFID) is a development finance institution established in 1976 by the member states of the Organization of the Petroleum Exporting Countries (OPEC). The primary aim of OFID is to contribute to the social and economic development of emerging and less advanced economies. All developing economies, with the exception of OPEC member countries, are in principle eligible for OFID assistance. Today, 121 countries from the developing world - Africa, Asia, Latin America, the Caribbean, the Middle East and Europe - have benefited from OFID's assistance. OFID’s total commitments as at the end of August 2009 stood at US$11.07 billion, of which US$6.87 billion have been disbursed.

OFID’s resources consist of contributions made by OPEC member countries and the accumulated reserves derived from its various operations.

OFID cooperates closely with a number of sister organizations in delivering its development assistance. These institutions include the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development and the Saudi Fund for Development.

OFID also partners with other international Development Finance Institutions and commercial banks, as well as with agencies of the United Nations system and Non-Governmental Organizations (NGOs).

OFID offers a variety of products for the public sector. It also provides funding for the private sector and for trade through specialized windows. It offers grants for capacity building and humanitarian assistance.

For more information on OFID, please visit www.ofid.org.

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalization. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last five years primarily as a result of organic growth.

Standard Chartered aspires to be the best international bank for its customers across its markets. The Group earns around 90 per cent of its income and profits in Asia, Africa and the Middle East, from its Wholesale and Consumer Banking businesses. The Group has over 1600 branches and outlets located in over 70 countries. The extraordinary growth of its markets and businesses creates exciting and challenging international career opportunities.

Leading by example to be the right partner for its stakeholders, the Group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. It employs around 70,000 people, nearly half of whom are women. The Group's employees are of 125 nationalities, of which about 70 are represented in the senior management.

 

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