Standard Chartered – International Finance Corporation (IFC) Collaboration
Standard Chartered has collaborated with IFC (International Finance Corporation), a member of the World Bank Group, to launch the first-ever issuance of notes backed by loans to microfinance institutions in Africa and Asia.
The innovative transaction establishes a new product to provide investors with access to microfinance as an asset class, and enables Standard Chartered to expand its lending to the microfinance sector.
As part of the 2006 Clinton Global Initiative, Standard Chartered committed to establishing a USD500 million microfinance facility over a five-year period. This deal is part of that commitment.
The bank supports 48 microfinance institutions across 15 countries in Africa and Asia, with an impact on the lives of 1.2 million people. Standard Chartered believes that increasing access to financial services is key to building a sustainable business, and that microfinance is a commercial opportunity that has the potential to broaden social inclusion.
Paris Branch Opening
Standard Chartered officially opened a branch in Paris in June, in response to the significant growth of the Global Corporates and Financial Institutions businesses in France.
An office in France helps to deepen the Bank’s relationships with French firms looking to capitalise on trade and investment flows between markets in Asia, Africa and the Middle East and grow their business in these regions.
The team in Paris has extensive local and global knowledge and is headed by Raoul Leblanc.
Innovative deal for Union Bank of Nigeria
When Union Bank of Nigeria wanted to raise short-term liquidity in the offshore markets, Standard Chartered helped structure an innovative deal – Nigerian Naira-denominated privately placed zero coupon notes (non-interest bearing).
Debt Capital Market colleagues worked with Origination and Client Coverage, Credit Sales, Legal, Global Markets Operations and FX Trading to put together a transaction designed to raise money in local currency Naira, minimise currency risk to the client and target offshore investors – to diversify funding sources – while being cost competitive.
The deal demonstrated Standard Chartered’s local and international expertise and capabilities.