The International Finance Corporation (IFC) has completed the first transaction under its US$500mn Global Trade Finance Program. The transaction supports the confirmation by ABN Amro of a letter of credit issued by Metropolitan Bank, Pakistan, for import of agricultural commodities (canola) into Pakistan.

The IFC guarantee provided risk coverage of 80% and enabled the transaction to proceed quickly and efficiently at commercial pricing to the benefit of the exporter and both banks.

The Global Trade Finance Program supports trade with emerging markets worldwide and promotes flows of goods and services between developing countries.

IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.