The voluntary fund hopes to attract start-up capital of $20 million and will provide member countries facing trade challenges with the finance they need to increase their trade capacity. It is estimated for every dollar invested, the fund will generate $20. The Facility, structured as a guarantee fund, will cover risk for providers of trade credit in financial institutions of Commonwealth countries. It seeks to stimulate lending by major banks to smaller banks in member states and reduce risk.
Sri Lanka was one of the four countries that signed the declaration as anchor investors and has contributed to set up the facility.