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ADB provides USD 200 mln through its SCF program to combat COVID-19

Thursday 12 March 2020 13:56 CET | News

The Asian Development Bank (ADB) has provided USD 200 million through its Supply Chain Finance Program for medicine manufacturers and distributors.

 

Companies manufacturing and distributing products, including medicines and personal protective equipment, are increasingly strained as production and distribution ramp-up to address COVID-19. The support from ADB, working in partnership with commercial banks, will provide such companies in Asia and the Pacific with additional working capital to meet expansion and other requirements.

The funds will be made available through ADB's Supply Chain Finance Program and provided to selected companies within weeks. ADB is closely monitoring the impact of COVID-19 on trade finance and is in regular contact with client banks to assess whether additional support is required. 

Given that a single pool of supply chain finance is typically used for a subsequent delivery over a period of 120–180 days, the USD 200 million facilities could support more than USD 400 million of financing over the next 12 months. Fifty-fifty risk sharing from partner commercial banks could boost support under the facility to USD 800 million over the same period, explains devdiscourse.com.

 


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Keywords: The Asian Development Bank, ADB, Asia, Phillippines, supply chain finance, COVD-19, coronavirus, trade finance, medicine manufacturer, medicine distributor
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: Philippines
This article is part of category

Banking & Fintech