IFC's Structured Trade and Commodity Finance initiative (STCF) is a collaborative solution to maintain and extend the availability of financing for the trade of critical commodities in emerging markets. STCF is a flexible instrument allowing IFC to engage in the most challenging markets with systemic financing gaps in cooperation with private sector banking partners. It enables IFC and its partners to prudently manage risks through short tenor financing tailored to the underlying commodity transactions.
Program Structure
Our STCF specialists take a project-by-project approach to provide liquidity and/or risk mitigation across the value chain, benefiting producers, processors, importers, and distributors mostly in the agricultural and energy sectors. Projects typically consist of a secured revolving short-term trade facility, with a banking partner acting as security agent, managing the daily documentary operations and collateral controls.
STCF is an excellent complement to IFC’s commodity programs of such as Critical Commodities Finance Program (diversified portfolio of obligors across various markets and sectors) and Global Warehouse Finance Program (warehouse financing in agricultural sectors).
Results
To date, STCF has supported over $3 billion in global trade of energy and agricultural commodities, all in IDA countries including Cote d’Ivoire, Ethiopia, Ghana, Mauritania and Moldova.