Mashreq, one of the leading financial institutions in the MENA region, has announced a $50m 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.
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The collaboration is instrumental in providing the much-needed US dollar liquidity to support the import of critical goods to these countries during challenging economic conditions. It addresses a growing trade finance gap, driven by rising inflation and decreasing investor interest outside of traditional banking.
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Under a Master Risk Participation Agreement (MRPA), the BII facility will leverage Mashreq’s extensive network and track record in trade finance. It will 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.
Initially, the focus of the collaboration will be on Angola, Bangladesh, Benin, and Ivory Coast, with plans to expand into additional countries over the coming year.
Chiradeep Deb, Global Head of Investment Banking, Corporate & 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.”
Admir Imami, Director and Head of Trade and Supply Chain Finance at British International Investment said: “Bridging the trade finance gap is a collaborative effort. 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 and foster sustainable growth of emerging economies.”
About Mashreq
Mashreq is almost a half-century old, yet proudly thinks like a challenger, startup, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entry-level digital-first customers to powering some of the region’s most prominent corporations and wealth accounts.
The bank’s mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them achieve their goals and unlock their vision of success.
Reassuringly present in major financial centres of the world, Mashreq’s home and global HQ remains in the Middle East, offering services whenever and wherever opportunity takes its customers. Mashreq has been recognized as the fastest-growing Middle East brand, by Banking 500 rankings for 2024 by Brand Finance.
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion.
