Overview of GLOBAL TRADE FINANCE SOLUTIONS April 2009

1. Overview of GLOBAL TRADE FINANCE SOLUTIONS April 2009

2. Responding to the crisis • GTFP program ceiling doubled to US$ 3 billion • Introduction and launch of the GTLP Program with IFC’s support of US$ 1 billion

3. DECLARATION ON DELIVERING RESOURCES THROUGH INTERNATIONAL FINANCIAL INSTITUTIONS LONDON SUMMIT, APRIL 2, 2009 “We, the leaders of the Group of Twenty, are committed to ensuring that…. For the Multilateral Development Banks (MDBs), we have agreed to support: ..Global Trade Liquidity Pool which should provide up to $50 billion of trade liquidity support over the next three years, with significant cofinancing from the private sector (as part of the global effort to ensure the availability of at least $250 billion of trade finance over the next two years). In order to reach this objective, we agreed to provide $3-4 billion in voluntary”

4. Current Conditions and Response Trade finance is the lifeblood of US$14 trillion annual global commerce and one of the most fundamental engines for global trade at all stages of the supply chain, especially in emerging markets. Current Market Conditions: Availability of trade finance declining Despite global slowdown, growing shortfall in trade financing continues to constrain global trade Driven by scarcity of capital, increased costs and liquidity premiums, heightened risk perceptions, loss of market participants Swiftly aggregating resources under simple and efficient structures can enhance impact in the global markets – economies of scale and timeliness and flexibility (in both setup and wind down). GTLP aims to address increased risk and liquidity constraints with a funded trade support program via collaboration among Development Financial Institutions (“DFIs”) / International Financial Institutions (“IFIs’) = Program Partners 4

5. GTLP – Investment Approach • Total mobilization from Program Partners up to US$5 billion (IFC US$1B) for potential leverage impact US$50 billion financing in developing world • Partner with 10+ global or regional banks to channel liquidity to i) the bank’s global or regional correspondent trade network, or ii) the bank’s client network in a specific sector(s) • Two investment structures: (i) 40:60 risk sharing - funding and risk shared between Program Partners (40%) and global/regional banks (60%); (ii) fully funded short-term loan to bank. • GTLP is designed to fund trade transactions – limited to 270 days and self liquidating. • IFC will act as agent for GTLP under guidelines and criteria agreed with Partners in Master Participation Agreement 5

6. GTLP Supply and Demand Overview GTLP Master Syndication Agreement DFI- 1 DFI - 2 Reg. DB IFC GTLP Account IFC = Agent GLOBAL BANK 60:40 RFP REGIONAL BANK Issuing Bank =Local banks SMEs/local banks 6

7. GTLP – Key Terms • Master Syndication Agreement governs the “partnership” among Program • Partners – guiding principles, representations, capital contribution /repayment regional allocation, etc. • Sets eligibility criteria and guidelines for selecting Utilization Banks • robustness of their trade operations to ensure acceptable credit risk • solid experience with IFC, specially under GTFP • strong geographic focus and reach • commitment to scaling up their trade operations • IFC undertakes due diligence on Utilization Banks and negotiates on • behalf of Partners. • IFC provides required info to Partners to endorse credit decision. • Capital Drawdown (IFC’s B loan model): Each Program Partner will contribute its pro-rata share to a separate GTLP escrow account 7

8. GTLP – Key Terms (con’t) 8 • Administrative Expenses • Establishment Fee: US$250K per Program Partner • Administration Fee: 30bps of committed amounts to be billed/paid semi-annually to IFC by Program Partners. Fees support Program structuring, due diligence and administrative costs. • Processing Agent fee: TBD. IFC will try to use existing B loan structure to minimize costs, but will involve use of GTLP Escrow Account and Processing Bank. • Reporting • IFC will provide to Program Partners quarterly and annual reports in relation to operations financed under the GTLP including audited GTLP account reports detailing balances, disbursements/repayments/interest flows, etc. • Strategy for Allocation by Regions • Achieve wide geographical diversification consistent with GTLP objective of reaching under-served clients globally in emerging markets • Account for Program Partners’ unique geographical mandates by ensuring their regions are covered through GTLP as a whole (e.g., GTLP aggregated funding reaches Africa, LATAM, etc)

9. GTLP – Expected Reach 9

10. Next Steps For GTLP Launch Complete Phase I of fund raising by end of April – US$3-4B in Commitments by early May KFW, DEG, FMO, SIDA, Norfund, IDB, Arab Monetary Fund, Singapore, Korea, China and ADB Conclude Appraisal of at least four global/regional banks and present Info-Memo to participants First Disbursements Late May 10

11. Global Trade Finance Program GTFP delivers riskmitigation for counter-party bank risk for trade transactions in over 70 emerging markets. • AAA Rated – Basel II benefits • Coverage up to 100% • Umbrella guarantee: covering country and commercial risk

12. Program Features • Covers private sector trade transactions • Covers all bona fide trade finance instruments • Covers goods in line with IFC’s exclusion list • Structured as a Standby via SWIFT • Payable after 15 days of claim • Market Pricing • Dedicated trade team with responsive service: 24 hours

13. IFC Guarantees – Trade Instruments • Import Letters of Credit • Standby Letters of Credit • Guarantees • IFC covers the obligation of the issuer of the performance bonds, bid bonds, payment/ advance payment gtees • Bills of Exchange/ Promissory Notes for Trade • IFC covers the obligation of the issuer for pre-export financing or post-import financing extended by a participating Confirming Bank

14. GTFP Program Profile GTFP TRANSACTIONS Cumulative Program Statistics (as of March 2009) • TOTAL # / US$ OF GTEES 2938 / $3.85 B • AVERAGE TENOR 5.25 months • MEDIAN GTEE VALUE US$ 200K • TXN $ RANGE US$ 2K- 23M • TXNS< US$ 1 MIL. 75% • TOTAL RISK SHARE BY CBs 27%

15. Regional Breakdown of Guarantees (US$) in FY09 SOUTH ASIA SECA 5% 1% AFRICA MENA 35% 23% CEU 5% EAP LAC 3% 33%

16. GTFP Covers a Variety of Goods

17. Issuing Bank Coverage so far… 147 Banks in 73 countries Signed In process

18. 147 Issuing Banks in 73 countries (1) AFRICA 27 countries – 44 banks Angola Banco de Fomento Angola Benin Diamond Bank Ecobank Burkina Faso Ecobank Burundi BCB Interbank Cote d’Ivoire Ecobank DRC Raw Bank Gambia Access Bank Ghana Ecobank Merchant Bank of Ghana Trust Bank Kenya Barclays I&M Bank Habib Bank Ltd. Kenya Commercial Bank Prime Bank Diamond Trust Bank Liberia LBDI Madagascar Bank of Africa Malawi First Merchant Bank Mali Ecobank Mauritania Générale de Banque de Mauritanie Mauritius Habib Bank Ltd. Mozambique ABC BDC Niger Ecobank Nigeria Access Bank Diamond Bank Ecobank First City Monument Bank (FCMB) Guaranty Trust Bank (GTB) Intercontinental Bank IBTC Zenith Rwanda BCR Senegal Ecobank Sierra Leone Guaranty Trust Bank Rokel Sierra Leone Commercial Bank Seychelles Habib Bank Ltd. South Africa Sasfin Tanzania ABC Exim Bank Togo Ecobank Uganda Orient Bank Zambia ABC

19. 147 Issuing Banks in 73 countries (2) LATIN AMERICA AND CARIBBEAN 14 countries – 34 banks E. EUROPE/ CENTRAL ASIA 12 countries – 25 banks Argentina BBVA Banco Francés Banco Patagonia Banco Supervielle Banco Galicia Banco Itau Buen Ayre Banco CMF Standard Bank Argentina Bolivia Banco Mercantil Brazil BIC Banco Banco Comercial Uruguai S.A. Banco Indusval SA Daycoval BPN Brasil Pine Bank Banco Sofisa Banco Fibra Unibanco Costa Rica Promerica Dominican Republic Banco Leon Ecuador Bolivariano Guayaquil Internacional Produbanco Haiti Capital Bank Honduras Banco Ficohsa Mexico Monex Financiera SA Nicaragua Banco de Finanzas Paraguay Banco Continental Interbanco Banco Regional BBVA, Paraguay Peru Banco Interamericano de Finanzas (BiF) St. Lucia Bank of St. Lucia Uruguay Nuevo Banco Comercial Albania Banka Kombetare Tregtane (BKT) Armenia Armeconombank Azerbaijan Azerigazbank Respublika Unibank AzerDemiryol Bank Belarus Prior Bank Georgia Bank of Georgia Bank Republic Kazakhstan Bank CenterCredit Bank Kaspi Kosovo RZB Kosovo Moldova Mobias Banca Russia ATB Credit Bank of Moscow Absolut Locko Bank MDM Russian Standard Bank Ursa Bank Ural Trans Bank Tajikistan Bank Eshkata Bank Tajik Sodirot Turkey Habib Bank Ltd. Seker Bank Ukraine Raiffeisen Bank Aval

20. 147 Issuing Banks in 73 countries (3) ASIA 12 countries – 29 banks MIDDLE EAST & NORTH AFRICA 8 countries – 13 banks Bangladesh BRAC Bank Eastern Bank EXIM Bank Habib Bank Ltd Southeast Bank Bank Alfalah Bhutan Bhutan National Bank Cambodia ACLEDA China Bank of Beijing Indonesia PT Bank Danamon PT Bank Hana Maldives Habib Bank Ltd. Mongolia Golomt Bank Xac Bank Zoos Bank Nepal Bank of Kathmandu NIC Bank Pakistan Bank Alfalah Allied Bank Askari Habib Bank Ltd. Habib Metropolitan Bank Soneri MCB Meezan Bank Papua New Guinea Bank South Pacific Sri Lanka Commercial Bank of Ceylon Habib Bank Ltd. National Development Bank Nations Trust Bank Vietnam Exim Bank Sacombank Techcombank Afghanistan Habib Bank Ltd Bank Alfalah Egypt Ahli United Bank Lebanon Banque Libano- Francais Fransabank Bank of Beirut Habib Bank Ltd. Malta FIMBank plc. Jordan Bank of Jordan Capital Bank of Jordan Union Bank Syria Bank of Syria and Overseas West Bank Alrafah Microfinance Bank Bank of Palestine Arab Islamic Bank Yemen Saba Islamic Bank

21. Next phase coverage • Latin America and Caribbean • Colombia • Guatemala • El Salvador • Chile • Panama • Dominican Republic • Belize • St. Kitts and Nevis • Mid-East/N.Africa • Afghanistan • Iraq • Tunisia • Libya • Africa • Cape Verde • Cameroon • Comoros • São Tomé and Príncipe • Europe & Central Asia • Serbia • Kyrgyz Republic • Romania • Bosnia – Herzegovina • Macedonia • East and South Asia • Philippines • Lao PDR • India

22. 169 Confirming Banks in 76 countries- 1

23. 169 Confirming Banks in 76 countries- 2

24. 169 Confirming Banks in 76 countries Top Confirming Banks in FY09 (US $) La Caixa JP Morgan Chase BNP Paribas Commerzbank Standard Chartered Deutsche Bank Wachovia Commonwealth Intesa Sanpaolo Citibank BPI Scotiabank SMBC ANZ Bank LBBW UBS Fortis Bank of Montreal Zürcher Kantonalbank KBC 24

25. L/C in favor of exporter Payment Payment Payment International Bank (Confirming) Request L/C Issuance Confirm L/C Documents Documents Documents Goods Local Bank (Issuing) Importer Exporter International Finance Corporation IFC Guarantee Typical GTFP Transaction: Import LCs

26. Trucks from USA to Nigeria • LC issued by a Nigerian Bank • Confirmed by a US Bank • Tenor: 7 months • Value: $10M • IFC Covers 33% Nigeria USA

27. Cotton from USA to Bangladesh • LC issued by a Bangladeshi Bank • Confirmed by a US Bank • Tenor: 8 months • Value: $1.4M • IFC Covers 64% Bangladesh USA

28. Local Bank Exporter Importer International Finance Corporation Pre-Export Financing Goods Pre-export Funding Pre-export Financing International Bank Request Pre-export Advance SBLC/ PN for Pre-export Funding Request IFC Gtee for Pre-Export Loan IFC Gtee

29. Pre-export Financing: Parafin from Argentina to Chile Argentina Chile Prom Notes American Bank Argentine Bank US $10 Mil 100% Gtee

30. Pre-export Financing: Wheat from Brazil to Uruguay Brazil Uruguay Prom Notes French Bank Brazilian Bank US $150K 100% Gtee

31. Local Bank (Issuing) Importer Exporter GTFP: Post-Import Financing Unconfirmed Usance L/C in favor of exporter 6. $$ on due date 7. $$ on due date 5. Discounts LC docs without recourse International Bank (Confirming) 1. Accepts LC docs for payment on due date 2. Acceptance of LC docs LC Documents LC Documents Goods 3. Request for IFC Gtee for post-import acceptance International Finance Corporation 4. IFC Guarantee

32. Post-import financing: cars from Singapore to Nicaragua • Promissory Note issued by a Nicaraguan Bank • Funded by an American Bank • Tenor: 4 months • Value: $ 750K • IFC Covers : 75% Nicaragua Singapore

33. Successful Transactions - Examples Kazakhstan Letter of Credit Baby food from Switzerland Confirming Bank in Canada Tenor: 12 months US$ 4.8 million (100%) Thailand Letter of Credit Rice to Nigeria Confirming Bank in USA Tenor: Up to 6 months US$ 1.3 million (100%) Spain Letter of Credit Ceramic tiles to Jordan Confirming Bank in Spain Tenor: Up to 6 months US$ 0.45 million (100%) Mongolia Letter of Credit Tractors from USA Confirming Bank in USA Post-import financing for 2 yrs US$ 0.9 million (100%) Jordan Standby LC Construction Project in UAE Confirming Bank in UAE Post-shipment export financing US$ 7.5 million (100%) Morocco Letter of Credit Fertilizer to Bangladesh Confirming Bank in USA Tenor: Up to 6 months US$ 0.9 million (62.9%) Brazil Post-import financing Plastic utensils to Paraguay Confirming Bank in Spain US$ 0.19 million Lebanon Irrevocable Reimbursement Undertaking Construction Machinery Confirming Bank in Austria US$ 11 million (85%) South Africa Letter of Credit Coal from South Africa to Pakistan Confirming Bank in USA Tenor: Up to 6 months US$ 4.8 million (100%) Pakistan Letter of Credit Fertilizer from Tunisia Confirming Bank in UK Tenor: 6 months US$ 7.2 million (70%) ArgentinaLetter of Credit Soyabean oil to Madagascar Confirming Bank in UK Tenor: Up to 6 months US $1.6 million (100%) Yemen Letter of Credit Rice from Pakistan Confirming Bank in Germany Tenor: 6 months US$ 0.75 million (100%) Lebanon Bid Bond Construction Project in Qatar Confirming Bank in UAE Tenor: 3 Months US$ 2.7 million (85%) Nigeria Performance Bond Supply of methanol (5 Mths) Confirming Bank in South Africa US$10 million (100%) Malta Discount against Acceptance of LC dox (Third Bank LC) Machines to West Africa Confirming (Discounting) Bank in China US$ 0.3 million (100%) Sierra Leone Letter of Credit Telecom Cables from Spain Confirming Bank in Spain Tenor: 3 Months US$ 0.39 million (100%)