HONG KONG: HSBC and the World Bank’s International Finance Corporation (IFC) will jointly provide funding to trade transactions valued at up to $1 billion, in a move to help fill a gap in financing for emerging market trade.

IFC and HSBC said on Thursday 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, according to a joint statement.

The deal aims to support cross-border trade and bolster exports in critical industries as economies face geopolitical tensions and trade barriers that could create uncertainty for supply chains and threaten economic growth.

“There is a substantial and ongoing trade-finance gap in emerging markets in the Asia-Pacific region,” said Riccardo Puliti, IFC’s regional vice president for Asia Pacific, in the statement.