The International Finance Corporation (IFC) is set to invest up to €750mn in a portfolio of emerging market trade finance assets originated by Deutsche Bank.
The investment consists of an unfunded risk participation in a global, €1bn “pool of trade transactions” between Deutsche Bank and a group of emerging market issuing banks, according to a disclosure report on the IFC’s website. The deal will go to the IFC’s board for approval on August 31.
If approved, it will be the first global deal with Deutsche Bank under the IFC’s Global Trade Liquidity Program. In 2024 the pair inked a €215mn risk-sharing deal for exposures to issuing banks in Africa.
“Through an effective risk mitigation instrument and leveraging its wider network and market coverage, IFC plays a countercyclical role in supporting Deutsche Bank to strengthen and expand its trade finance capacity and market reach across various regions,” the IFC said in the disclosure.
Deutsche Bank and the IFC declined to comment before the arrangement is approved.
The investment comes on the heels of a €1bn deal in which the Multilateral Investment Guarantee Agency, an IFC sister organisation, created a guarantee platform to cover Deutsche Bank’s non-payment risks in transactions with state-owned emerging market banks.
Under the Global Trade Liquidity Program, the IFC has made investments in trade finance portfolios of seven lenders, including DBS, HSBC and Standard Chartered.
