BNP Paribas Vostok to expand trade finance offering

BNP Paribas Vostok in Russia and the World Bank’s IFC are set to develop a new trade finance product specifically focused on financing equipment that will support the sustainable production of power.

The new product aims to expand access to longer-term finance to allow companies in Europe and Central Asia to upgrade their production technology and energy infrastructure, and install local power generation capacity and reduce industries’ carbon emissions.

The two parties have signed a memorandum of understanding under which BNP Paribas Vostok, BNP Paribas' Russian subsidiary, will adapt some of the energy efficiency finance tools that the IFC has been developing.

“This is the beginning of our cooperation with IFC in Russia. I believe it will help strengthen the trade finance business line at BNP Paribas’ retail banking in Russia, as well as enhance our understanding of energy efficiency finance with tools developed by IFC.” says Philippe Delpal, president of BNP Paribas Vostok Bank and CEO of Cetelem in Russia.

This initiative forms part of the IFC’s Russia sustainable energy finance project, and will take place within the IFC’s global trade finance programme which promotes trade flows between emerging markets and increases developing countries’ share of global trade. BNP Paribas already participates in the IFC’s trade finance facilitation programme as a confirming bank, and via this new partnership it is expecting to source further trade finance business.