Press Release

Standard Bank and OFID announce the launch of two innovative African development financing initiatives

05/2010 March 5, 2010 London, England
Press inquiries:

Standard Bank and the OPEC Fund for International Development (OFID) have announced the launch of two unique African development financing initiatives. Agreements covering both initiatives were signed by the two partners today in London. The initiatives follow up on the objectives set by the 2009 G-20 summit in Pittsburgh, USA, which was chaired by US President Barack Obama. The summit had called upon the private sector to identify sustainable business strategies for public/private partnerships to improve access to finance for the poor and with a particular focus on small and medium-size enterprise (SME) financing.

The first of the OFID/Standard Bank initiatives is a smallholder Risk Sharing Agreement, which is to work in support of the Agriculture Guarantee Fund Scheme that the Bank launched in partnership with the Alliance for a Green Revolution in Africa (AGRA), Kilimo Trust, Millennium Development Agency, Ghana and the Millennium Challenge Account Mozambique (First Loss partners). AGRA is an African-led partnership working across the continent to help millions of small-scale farmers and their families lift themselves out of poverty. The alliance’s Board of Directors is chaired by Mr. Kofi Annan and it has thus far received support from the Rockefeller Foundation; the Bill & Melinda Gates Foundation; the UK Department of International Development and other donors.

The objective of the smallholder scheme is to make agricultural finance more accessible to smallholder farmers and SME agricultural producers through cooperative mechanisms. This is expected to assist up to 750 000 farmers and small business owners in Ghana, Mozambique, Uganda and Tanzania. The scheme is a three year program in which the First Loss Partners provide the Bank with a 1st loss guarantee and also assist with technical support to improve agricultural efficiencies. In support of the smallholder scheme, OFID agreed to provide 50% Risk Participation on the remainder of the Bank’s potential risk. Through Standard Bank’s network, the facility will make available up to US$50 million in the first year, US$66 million in the second year and US$100 million in the third year for the four countries.

The second of the two initiatives is a Trade Finance Risk Sharing Agreement. OFID will share the risk on a 50/50 split basis with Standard Bank Plc and Standard Bank of South Africa on trade finance transactions of up to US$300 Million in total entered into by Standard Bank with certain eligible banks in a number of African countries. The objective of this agreement is to build trade finance capacity in African countries at affordable rates.

Commenting, Mr. Brad Koen, Managing Director and Global Head, Investment Banking & Coverage, Standard Bank, said: “Standard Bank is delighted to be agreeing a partnership with OFID to assist with their aim to foster social and economic progress in the developing world through the provision of concessional financing for developing countries. That we are jointly managing and sharing risk is a tangible sign of our joint commitment to successful implementation of these agreements - which ultimately will encourage economic growth in Africa.”

On his part, Mr. Suleiman Jasir Al-Herbish, Director General of OFID, said: “We look forward to a productive partnership with Standard Bank. The two institutions' knowledge of local and development financing in Africa ensures a quick launch of the much needed funding facilities to African farmers and local banks.”

For more information please contact:

David Pitts
Standard Bank
Tel: +44 20 3145 8095
Email: David.pitts@standardbank.com

Said Aissi
Public/Private Sector Operations Department
The OPEC Fund for International Development (OFID)
Parkring 8, A - 1010 Vienna, Austria Tel. +43-1-515 64 ext. 276 Fax. +43-1-513 92 38 Email: s.aissi@ofid.org

Reem Aljarbou
Department of Information
The OPEC Fund for International Development (OFID)
Parkring 8, A-1010 Vienna, Austria
Tel: +43 1/515-64 ext. 291
Email: r.aljarbou@ofid.org
Web: www.ofid.org

James Marshall
Financial Communications
FD +44 20 7269 7222 or +44 7515 597 629
Email: James.marshall@fd.com

Note to Editors:

Standard Bank

Standard Bank is a leading African banking group focused on emerging markets globally. It has been a mainstay of South Africa's financial system for over 145 years, and now spans 17 countries across the African continent. Its international expansion has taken it to 16 countries outside Africa including Brazil, Russia and China. Its headquarters are in Johannesburg and it is listed on the Johannesburg Stock Exchange.

Standard Bank's Corporate and Investment Banking division is a leading global emerging markets corporate and investment bank and offers its clients banking, trading, investment, risk management and advisory services in developing economies throughout the world. It has specific sector expertise in industries relevant to its global footprint, with strong sector value propositions in: International Development; mining & metals; oil, gas & renewables; telecommunications & media; power & infrastructure and Financial Institutions.

Standard Bank Plc in London is the bank's principal international subsidiary. It is authorised and regulated by the Financial Services Authority, and is a member of the London Stock Exchange, the London Bullion Market Association, the London Metal Exchange, the London Platinum and Palladium Market and the New York Mercantile Exchange (COMEX Division). Through its branch in Tokyo, it is also a member of the Tokyo Commodities Exchange (TOCOM). It has major trading affiliates in Brazil (Banco Standard de Investimentos S.A.), Argentina (Standard Bank Argentina S.A.), and Hong Kong (Standard Bank Asia Ltd.)

For further information visit the following: link

The OPEC Fund for International Development (OFID)

The OPEC Fund for International Development (OFID) is a development finance institu¬tion 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 countries. All developing countries, with the exception of OPEC Member Countries, are in principle eligible for OFID assistance. Today, 122 countries spread across 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 January 2010 stood at US$11,682 million, of which US$7,125 million 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 work. 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, including public sector loans for development projects and programs; balance of payments support and debt relief under its Heavily Indebted Poor Countries (HIPC) Initiative; trade financing; support to private enterprise; grants for technical assistance, food aid, research and humanitarian relief work; and contributions to the resources of other development organizations whose work directly benefits developing countries.

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