IFC Provides Bancolombia Risk Facility

The IFC has signed a facility with Bancolombia that is says will execute up to $400m of risk-management transactions. “This IFC facility, the first of its kind to a Colombian bank, will strengthen the bank’s ability to provide risk-management instruments to local companies,” says the multilateral. It adds that the deal will increase the capacity of Colombian companies to access risk-hedging products such as cross currency and interest rate swaps. “This will allow these companies to better manage their exposure to foreign exchange and interest rate risk, which could result in lower-income volatility and a more stable cash flow,” says the IFC. The IFC will act as a counterparty on cross currency and interest rate swaps, allowing Bancolombia to cover clients in manufacturing, construction, and tourism.