Washington, D.C. April 27, 2001—
The International Finance Corporation will help boost sub-Saharan Africa’s exports of oil and refined products through an innovative US$200 million trade finance facility in partnership with Crédit Lyonnais and the participation of several local African banks. The facility will address the need for trade finance for domestic petroleum exporters, including privately controlled refineries and their service providers. It will also help to mobilize commercial bank financing through the expansion of country and sector limits of participating local and international banks.
Under the terms of the sub-Saharan Africa Petroleum Trade Finance Facility (SAPTFF), IFC will guarantee 40 percent of the exposure of Crédit Lyonnais and other participating local and international banks in the oil and refined products sector. SAPTFF is IFC’s first guarantee facility which targets and benefits Africa’s oil sector exports while enabling syndication of SAPTFF transactions to include both domestic and international banks.
Crédit Lyonnais, a leading French bank, has a large network in sub-Saharan Africa and focuses on commodity finance in the region.
Mr. Rashad Kaldany, IFC Director for Oil, Gas, and Chemicals, said the facility will stimulate the region’s export capabilities
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a major driver of economic growth
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and help build the capacity of local banks to finance the petroleum sector through structured commodity trade transactions.
The mission of IFC, part of the World Bank Group, is to promote sustainable private sector investment in developing countries as a way to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
