19 August 2008, London – PGGM, the Dutch asset manager, and Standard Chartered Bank (Standard Chartered) are pleased to announce an innovative risk-sharing arrangement in respect of Standard Chartered’s successful Trade Finance business.

Under the transaction - called ‘Shangren’ - PGGM provides credit protection at an ‘equity’ and ‘mezzanine’ level on a diversified portfolio of trade finance credit exposures. The US$ 2.5 billion portfolio comprises 1,600 customers in 30 countries across Standard Chartered’s core markets. All the assets are sourced from the bank’s balance sheet and have gone through rigorous internal credit process.  Standard Chartered co-invests with PGGM in the ‘equity’ portion of the transaction and retains full amount of the senior tranche.

Raymond van Wersch, Senior Portfolio Manager Structured Credit at PGGM commented:  “Shangren offers us a unique opportunity to invest in a new asset class that is difficult to find in the public market. The portfolio is well-diversified and Shangren’s attractive risk-return characteristics represent a valuable addition to our continuously growing structured credit portfolio as well as the overall portfolio.”

“Standard Chartered’s long-standing commitment and expertise in emerging markets made it a natural choice for us. The fact that both institutions demonstrate high environmental and social awareness throughout their businesses was also a key factor for PGGM.”

Paul Hare, Managing Director, Portfolio Management at Standard Chartered stated:

“We are delighted to have closed this significant balance sheet transaction with PGGM. It is particularly satisfying given the broader market context. PGGM is an experienced investor with rigorous standards. We see Shangren as strong endorsement of our credit discipline and clear strategic focus in our core markets.” 
  
About Standard Chartered Bank

Standard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions.

For more information, please visit: www.standardchartered.com

About PGGM

PGGM is a Dutch pension administrator and asset manager acting on behalf of Pensioenfonds Zorg en Welzijn, the pension fund for the care and welfare sector. PGGM currently has EUR 86 billion under management for over two million employees and former employees in the care and welfare sector.

For more information please visit: www.pggm.nl