London, 14 November, 2011 - J.P. Morgan and the OPEC Fund for International Development ("OFID") today announced that they have signed an agreement for a US$200 million risk participation arrangement that will help increase the availability of trade finance in developing countries and emerging markets.
Under the terms of the agreement, J.P. Morgan will originate a portfolio of trade finance transactions from selected banks in around 20 developing countries, including some of the world's poorest nations, enabling the banks to support their importer and exporter clients. OFID will provide the approved lines for these banks and strong credit enhancement.
"J.P. Morgan is delighted to team up with OFID to increase the availability of trade finance in the developing world. Our extensive network of banks in emerging markets, combined with OFID's global expertise in providing development finance, will enable the program to support an estimated incremental trade finance flow of approximately US$500 million annually," said Dani Cotti, Global Head of Trade at J.P. Morgan. "This comes at a time when the Basel III treatment of trade finance has been amended to help promote the trade of goods in the developing world and demonstrates our ongoing commitment to facilitating emerging market trade flows that are critical to sustaining the global recovery."
"While changing market conditions are threatening the availability of trade finance in the regions of the world where it is needed most, our relationship with J.P. Morgan represents a key step in our efforts to alleviate the lack of financial resources and spur economic growth in emerging markets and developing countries worldwide," said Suleiman J. Al-Herbish, OFID Director General.
About OPEC Fund for International Development ("OFID")
The OPEC Fund for International Development ("OFID") is a development finance institution which was established in 1976 by the Member States of the Organization of the Petroleum Exporting Countries (OPEC). The primary aim of OFID is to contribute to the social and economic advancement of developing countries. All developing countries, with the exception of OPEC Member Countries, are in principle eligible for OFID assistance. Today, 130 countries spread across Africa, Asia, Latin America, the Caribbean, the Middle East and Europe have benefited from OFID's assistance. For more information please visit: www.ofid.org.
About J.P. Morgan Treasury Services
J.P. Morgan's Treasury Services business is a full-service provider of innovative cash management, trade, liquidity, commercial card and escrow services -- specifically developed to meet the challenges treasury professionals face today. More than 135,000 corporations, financial institutions, governments and municipalities in over 180 countries and territories entrust their business to J.P. Morgan. J.P. Morgan Treasury Services is one of the world's largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at www.jpmorgan.com/ts.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.