Deutsche Bank has partnered with the Multilateral Investment Guarantee Agency (MIGA) to launch a €1 billion trade finance platform.
The initiative targets frontier and emerging markets, where tightening risk appetites have constrained access to trade finance.
The agreement marks what MIGA describes as its first programmatic trade finance portfolio guarantee platform with a global commercial bank.
Under the framework, MIGA will provide Deutsche Bank with guarantees that protect against the risk of non-payment by state-owned banks.
These institutions often serve as primary conduits for importing essential goods and supporting underserved segments in developing economies.
Beyond expanding general access to trade finance, the platform will direct a portion of its volume toward priority areas.
These include International Development Association (IDA) countries, fragile and conflict-affected situations, small and medium enterprises, agriculture, health, and water.
For the global trade finance sector, the partnership demonstrates a mechanism for de-risking cross-border transactions in high-risk jurisdictions.
By combining MIGA’s risk mitigation capacity with the corporate banking network of Deutsche Bank, the structure allows the bank to manage its exposure more efficiently while sustaining trade finance availability in underserved markets.
“Trade finance is the ‘working capital of nations’ and essential to achieving the job creation and economic inclusion needed to improve lives and livelihoods in our member countries,”
said Junaid Kamal Ahmad, Vice President of Operations at MIGA.
He added that the collaboration aligns with the agency’s goal of mobilising private capital as a development multiplier.
Gerald Podobnik, Global Co-Head of Deutsche Bank’s Corporate Bank, noted that targeted risk-sharing structures help expand capacity where it is most needed.
“Applying this portfolio framework positions us to support more client activity, manage risk more efficiently and facilitate trade flows globally,”
he said.
The partnership builds on an existing relationship between Deutsche Bank and the World Bank Group.
The German lender has participated in syndications with the International Finance Corporation since 1959 and remains involved in several of its active trade finance programmes.
Featured image credit: Edited by Fintech News Switzerland, based on image by HobieArt via Magnific
