StanChart signs $500m risk-sharing deal with Ofid
A $500 million trade-finance agreement has been signed between global bank Standard Chartered and the Organisation of Petroleum Exporting Countries Fund for International Development (Ofid), which aims to boost world trade flows for emerging market banks.
Ofid will guarantee letters of credit (LCs) issued by banks in developing countries, and Standard Chartered will confirm the LCs and act as risk originator.
The programme involves the two parties equally sharing the payment risk of a deal that takes place between an exporter and an importer. It is estimated the programme will generate incremental trade of more than $2 billion.
According to Geoff Parry, global head of trade asset management at Standard Chartered, the deal is designed to inject
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