IFC, a member of the World Bank Group, is providing its long-term partner NBD Bank with a US$7mn trade finance guarantee that will allow the bank to expand financing to small businesses in Russia’s Nizhni Novgorod region.
NBD Bank has joined IFC’s global trade finance programme as an issuing bank.
IFC will provide the bank with up to 100% guarantees for the import and export operations of its clients, including small and medium enterprises. The bank will have access to a global network of more than 250 banks participating in the programme.
The agreement was signed on June 2 by Lars Thunell, IFC executive vice-president and CEO, and Alexander Sharonov, CEO of NBD Bank.
“We are proud to join IFC’s trade finance programme, which will give us more opportunities to support our clients and help expand their reach into global markets,” says Sharonov. “IFC’s guarantee will have a significant impact on our activities, particularly during these difficult times.” Sharonov also notes that the bank hopes to strengthen its network through the programme and expand its client base, reaching more small and medium enterprises.
Thunell comments: “The IFC global trade finance programme enables banks to help smaller companies reach new markets and expand foreign trade. We believe that NBD Bank is well positioned to expand its trade finance operations and thus promote foreign trade in Russia’s Nizhni Novgorod region.”
NBD Bank is IFC’s long-term partner in the Nizhni Novgorod region. Since 2001, IFC has provided the bank with a total of US$29.5mn in debt financing to expand SME finance and energy-efficiency finance in the region.
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