IFC, the World Bank Group's private-sector arm, and Citi announced a trade finance facility of up to $2 billion on October 29, aimed at companies in Africa, Asia and Latin America. IFC will provide guarantees of up to $1 billion to Citi, Citi will commit an equivalent amount, and the facility is expected to support more than 100 companies over the next three years. If you sell into emerging markets on letters of credit or open account, it's a good moment to look at what a deal like this changes for you and what it doesn't.
What IFC and Citi announced
Global Trade Review describes the facility as a 50-50 risk-sharing arrangement: on each eligible transaction, IFC covers up to half of the risk and Citi keeps the rest. IFC's guarantees free up room on Citi's balance sheet, and Citi says it will use that room for additional lending, including at least $500 million of its own trade financing for companies in sectors with climate benefits, such as renewable energy, water and sanitation, and sustainable agriculture. It will start in several countries across the three regions, with further expansion planned.
The stated aim is to reach markets where scarce and costly trade finance keeps companies from importing inputs, filling orders and hiring. The announcement puts the global trade finance gap at an estimated $2.5 trillion. IFC's Mohamed Gouled also called it a structure "we believe other global banks could adopt," so this may not stay a one-bank story.
What it could mean for your buyers
For an exporter, the most direct effect is likely to show up on the buyer's side. An importer that can get bank financing for its inputs is better placed to place orders and pay for them, and more bank capacity in a market can mean more letters of credit issued and more confirmations available. That's good news if you're trying to grow in those regions.
The announcement doesn't say how individual transactions will be selected, though, or which of your buyers' banks might benefit. We'd treat it as more capacity in the market, not as a change to your own exposure.
Where each piece sits
A guarantee from IFC to Citi protects Citi's lending. It doesn't protect your receivable, because you aren't a party to it. What protects you is the payment instrument you've chosen and any cover you've arranged around it.
On a letter of credit, your risk is the issuing bank, and often the country it sits in. A confirmation from a bank you trust moves that risk, usually at a cost, and confirming banks set their own limits by country and by bank. Credit insurance can also be written on bank risk in some cases, depending on the insurer and the policy wording.
On open account, your risk is the buyer. Trade credit insurance responds when a covered buyer becomes insolvent or stays in default past the waiting period, and the insurer sets a limit on each buyer. Allianz Trade, Atradius, Coface and Credendo all publish country risk assessments, and those views shape what limits are available on buyers in each market.
Political risk is a separate question. A buyer can have a willing lender and still be unable to pay you if a government restricts currency transfers, or if war or a government action stops the deal. Many export credit policies include cover for political causes of non-payment, and standalone political risk insurance can be written for events such as contract frustration, depending on the wording. For US exporters, EXIM's export credit insurance covers commercial and political risks of non-payment, and its Country Limitation Schedule shows where it can support a sale, so it's worth checking alongside private carriers.
What we'd look at now
If you sell, or plan to sell, into any of these regions, a few questions are worth asking.
When a buyer tells you new bank financing is on the way, which bank is it, and have you looked at the buyer's own credit as well as the bank behind it?
On letters of credit, which issuing and confirming banks are you relying on, and how do your confirming bank or your insurer view them?
On open account, are your buyer limits still where you need them for the orders you expect, and what does your policy say about non-payment caused by political events?
How much of your receivables sit in any one country, and would a currency or transfer restriction there leave you waiting?
We don't expect one facility to close a trade finance gap of that size, and it's early days. But it's a sign that development finance institutions and global banks are willing to share risk to keep trade moving into these markets, and if other banks follow, exporters should see more buyers with access to financing. Either way, your own receivable is still yours to protect.
If you'd like a second look at how your payment terms, trade credit insurance and political risk cover fit together, we're always happy to talk it through. Talk to Impello.
This article is general information, not advice on any specific policy, buyer or transaction. Coverage depends on the actual policy wording.
Sources: IFC, "World Bank Group and Citi Partner to Tackle the Trade Finance Gap Holding Back Businesses and Jobs Across Africa, Asia, and Latin America," October 29, 2026; Global Trade Review, "IFC and Citi launch US$2bn trade finance facility for emerging markets."