IFC, Union Bank boost for trade

To provide $ 5 million trade-finance facility :

IFC, a member of the World Bank Group, will provide a $ 5 million trade-finance facility to the Union Bank of Colombo Limited to help boost international trade opportunities for the bank and its small-business and corporate-sector clients.

Union Bank Director and CEO Anil Amarasuriya and IFC Vice President, General Counsel Rachel F Robbins exchange the agreements. Senior Union Bank and IFC officials look on.

The trade-finance facility will provide the Union Bank of Colombo with risk coverage and access to a global network that will support growth of the bank’s trade-finance business.

The network will facilitate transactions in challenging markets and enable Union Bank to build relationships with new institutions that will reduce risk and provide trade opportunities for small and medium enterprises.

“IFC’s support is very timely as Union Bank embarks on a new strategy to become the preferred banker for small and medium enterprises,” Union Bank of Colombo Limited Director and CEO Anil Amarasuriya said.

“The facility will help us better support smaller businesses by offering trade-finance products.”

This investment adds to IFC’s list of banks in Sri Lanka that are supported under IFC’s Global Trade Finance Program.

“IFC’s support to Union Bank of Colombo fits well with our strategy to partner with banks and financial institutions that are committed to developing Sri Lanka’s small and medium enterprises,” said IFC Vice President, General Counsel Rachel F Robbins said.

“The facility will help strengthen the bank’s capacity to support trade finance and provide access to over 80 emerging-market countries.”

IFC launched its Global Trade Finance Program in 2005 to help increase global trade in developing countries and promote flows of goods and services among these nations. The program now has a network of more than 300 participating banks worldwide.

In fiscal 2010, IFC issued $3.46 billion in guarantees through the program to support trade with emerging markets.