Mashreq, the MENA-based financial institution, has announced a $50million trade finance partnership with British International Investment (BII), the UK’s development finance institution and impact investor, to boost cross-border trade finance in key emerging markets across South Asia and Africa.
Mashreq says that this trade finance collaboration is critical in providing much-needed US dollar liquidity to support the import of critical goods to countries across South Asia and Africa amidst challenging economic conditions.
This partnership addresses a growing trade finance gap, driven by rising inflation and decreasing investor interest outside of traditional banking.
Under a Master Risk Participation Agreement (MRPA), the BII facility will leverage Mashreq’s network and track record in trade finance. This aims to further strengthen the bank’s capacity to provide trade finance to clients in West Africa and South Asia, ensuring faster response times and better client support. It will also enable a more targeted origination process, matching opportunities to investor preferences.
Chiradeep Deb, global head of investment banking, corporate and investment banking at Mashreq, said: “We are delighted to announce our collaboration with British International Investment, a partnership that will benefit many customers in our key emerging markets and reinforce our commitment to sustainable, resilient economic development.
“This collaboration, which enables us to benefit from BII’s considerable experience and legacy, aligns with our aim of being a progressive bank and providing innovative solutions to all our clients, and we look forward to a long and mutually beneficial working relationship.”
The collaboration will initially focus on Angola, Bangladesh, Benin, and Ivory Coast, with plans to expand into additional countries over the coming year.
“Bridging the trade finance gap is a collaborative effort,” explained Admir Imami, director and head of trade and supply chain finance at British International Investment. “We are delighted to work with Mashreq to extend our reach to countries that are struggling to get access to finance for imports and exports. This is well aligned with our goals to make trade finance more accessible, while fostering sustainable growth of emerging economies.”
The post Mashreq Secures $50million Trade Finance Partnership With British International Investment appeared first on The Fintech Times.