IFC doubles Agricole risk transfer, expects wave of EM deals

Port freight shipping trade Nigeria from Alamy 28Apr21 575x375
By Jon Hay
28 Apr 2021

Crédit Agricole has struck a new synthetic risk transfer deal with the International Finance Corporation, in which it will shed about 90% of the risk on $4bn of emerging market trade finance loans. The IFC expects to use securitization more to help banks in developing countries cope with the effects of the coronavirus pandemic.

The transaction, codenamed Marco Polo 3, replaces a $2bn deal Crédit Agricole CIB did in 2018, in which the IFC guaranteed an $85m second loss layer of risk on substantially all its book of emerging market trade finance.

“Marco Polo 2 is amortising and close to its end,” ...

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