05:54 AM EST, 12/12/2024 (MT Newswires) -- HSBC Holdings ( HSBC ) and International Finance Corporation said Thursday that they have partnered to create a $1 billion risk-sharing facility to help banks in emerging markets boost trade-related lending.

The facility will support banks in 20 countries across Africa, Asia, Latin America, and the Middle East, IFC and HSBC ( HSBC ) said.

IFC and HSBC ( HSBC ) added that they would equally share the risk on a portfolio of trade-related assets held by emerging-market banks in 20 countries in Africa, Asia, Latin America, and the Middle East.

The initiative is part of IFC's Global Trade Liquidity Program, designed to address the trade finance gap in emerging markets.

"Reducing the trade finance gap and improving access to finance will be central to fostering growth and sustainability across Asia and the region's supply chains," said Aditya Gahlaut, co-head of global trade solutions, Asia Pacific at HSBC ( HSBC ).