- OFID increases unfunded risk sharing program with Standard Chartered Bank
OFID increases unfunded risk sharing program with Standard Chartered Bank
Vienna, Austria, December 19, 2014. OFID has increased the unfunded trade finance risk sharing program with Standard Chartered (SC) Bank from US$1Bn to US$1.5 Bn. The agreement was signed by OFID Director-General Mr Suleiman J Al-Herbish and SC Head of Trade, Product Management, Mr Michael Vrontamitis.
The increase was deemed necessary in order to support further trade transactions in developing markets. Under the program, OFID guarantees trade finance instruments issued by banks in developing countries in order to support trade transactions of local businesses and corporations, while SC acts as originator of these transactions. The increase is estimated to support incremental trade of some US$5bn per annum. A large number of trade transactions from a wide range of commercial banks in developing countries are supported by this program.
The newly-signed agreement is an expansion of the existing partnership between OFID and SC that started in 2009.