The International Finance Corporation (IFC) and Santander have agreed a US$500 million risk-sharing facility to expand supply chain finance access for suppliers in emerging markets. Expected to support US$1.5 billion in transactions over three years, the initiative targets SMEs facing limited borrowing options. Launched amid rising interest rates and tightening bank liquidity, it leverages buyer credit profiles to improve payment cycles and liquidity. Nathalie Louat, IFC’s global director of trade and supply chain finance, emphasized its role in stabilizing volatile markets. Stefano Sabbadini, Santander’s global head of private debt mobilisation, called the partnership essential to scaling reach. The deal follows IFC’s 2022 Global Supply Chain Finance Program launch and complements its US$500 million guarantee capacity with Miga.
According to www.gtreview.com, the International Finance Corporation (IFC) and Santander have agreed a US$500 million risk-sharing facility to expand access to supply chain finance for suppliers in emerging markets.
Three-year transaction target and SME focus
The facility covers supply chain finance programmes originated globally by Santander and is expected to support US$1.5 billion in supply chain finance transactions over the next three years, according to the IFC — the private-sector arm of the World Bank Group. It specifically targets emerging market suppliers “that often face limited borrowing options”, including small and medium-sized enterprises (SMEs), enabling them to obtain financing based on the creditworthiness of their corporate buyers rather than their own balance sheets.
The IFC emphasized that the timing aligns with acute global pressures: supply chain disruptions, elevated interest rates, and tightening bank liquidity have “sharply curtailed the availability of working capital and trade finance”, disproportionately affecting smaller suppliers with minimal financial buffers. By improving payment cycles and increasing liquidity, the facility will help businesses invest, grow operations, and create jobs — a direct response to deteriorating conditions in trade finance markets across developing economies.
Strategic rationale amid market stress
“In this context, supply chain finance serves as a proven and effective mechanism for helping businesses preserve liquidity, strengthen resilience, and keep goods moving reliably across global markets,” stated the IFC in its official announcement. The institution cited mounting evidence that traditional trade finance channels are contracting, particularly in regions where banks are retreating from exposure — a trend underscored by the African Development Bank’s recent warning that Africa’s trade finance gap has topped US$74 billion.
Nathalie Louat, IFC’s global director of trade and supply chain finance, noted that such programmes ensure liquidity reaches key businesses and intermediaries “precisely when markets face heightened volatility”. Louat previously told GTR that supply chain finance has become a significant growth area for the IFC since launching its Global Supply Chain Finance Program in 2022.
Complementary institutional strengths
Stefano Sabbadini, Santander’s global head of private debt mobilisation, highlighted the strategic fit: the bank will leverage the IFC’s deep emerging market expertise, development mandate, and proven ability to mobilise capital to extend the geographic and operational reach of its supply chain finance offering. “Partnering with IFC allows us to go further than we could alone,” he said.
“By improving payment cycles and increasing liquidity, the facility will help businesses invest, grow their operations, and create jobs.”
This collaboration builds on prior IFC initiatives, including its US$500 million guarantee capacity agreement with Miga — another World Bank Group entity — announced on June 23, 2026. It also follows the live deployment of the IFC and C2FO’s supply chain finance platform in Nigeria, reinforcing the institution’s targeted rollout across high-need geographies.
Source: gtreview.com
Compiled from international media by the SCI.AI editorial team.
