STANDARD CHARTERED BANK RISK PARTICIPATION AGREEMENT


Overview

  • Reference: P-Z1-HAB-011
  • Approval date: 20/02/2013
  • Start date: 20/02/2014
  • Appraisal Date: 23/10/2012
  • Status: OngoingOnGo
  • Implementing Agency: Standard Chartered Bank (RPA) Marina Bay Financial Center Tower 1, Level 22, Mr
  • Location: Multinational

Description

An unfunded USD200 million Risk Participation Agreement (RPA) between the African Development Bank (AfDB) and Standard Chartered Bank (SCB) under which the two banks share the default risk on a portfolio of qualifying trade transactions originated by Issuing Banks (IBs) in Africa and confirmed/indemnified by SCB. The RPA will be for 3 years and supported transactions will have a maximum tenor of 2 years


Rationale

The proposed facility is expected to address a critical market demand for trade finance in Africa by providing support for trade in vital economic sectors such as agriculture, food imports, and export promotion. It will foster regional integration and enhance intra-African trade, thereby ultimately contributing to employment creation, foreign exchange earnings and public sector financing through government tax revenues.


Benefits

The objective of the RPA is to increase the risk bearing capacity of SCB and hence the amount of trade financing available to African IBs. The proposed RPA would permit SCB: -To allocate larger limits to African banks and thus reduce the trade financing gap . -By lending its


Key contacts

DRAMMEH Lamin Majula - OFSD4


Costs

Finance source Amount
ADBUSD 195,362,104
DeltaUSD 26,104
TotalUSD 195,336,000