Washington, November 1, 2011
—IFC, a member of the World Bank Group, and Societe Generale Corporate & Investment Banking will provide a new risk-management tool to allow producers and buyers in Africa, the Middle East, and Central and Eastern Europe to lock in prices for agricultural goods and gain better access to finance.
The tool, which was introduced earlier this year in a separate transaction with JP Morgan, will now focus for the first time on clients in Africa and the Middle East. The $100 million facility provides credit-risk protection on specific types of price hedges, enabling producers and buyers to protect against price swings.
“Higher food prices have pushed millions of people into poverty, particularly in Africa and the Middle East,” said IFC EVP and CEO Lars Thunell. “Volatile prices also make it harder for farmers and agricultural intermediaries to increase food production. IFC is helping strengthen food security in important ways, giving growers new tools to mitigate price risks.”
`“We are proud that the World Bank and IFC have selected Societe Generale Corporate & Investment Banking to partner with them to provide risk management solutions to producers and consumers in Africa, the Middle East, as well as Central and Eastern Europe—regions where Societe Generale benefits from a strong presence,” said Michel Péretié, CEO of Societe Generale Corporate & Investment Banking.
Price stability is critical for increasing investments in agricultural productivity, enhancing access to markets, and addressing long-term food-security issues. Global food prices remain high and price volatility is expected to continue over the medium term, according to the World Bank’s quarterly
Food Price Watch
report
issued today. Without greater access to hedging solutions made possible by the price risk-management product, financing options for producers would be constrained and incomes of buyers would be threatened.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
About Societe Generale Corporate and Investment Banking
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