Asian Development Bank has approved USD 100 million in additional financing for its supply chain finance programme, aimed at small and medium-sized enterprises (SMEs) in Asia Pacific.
ADB piloted its SCF programme by partnering with global banks to share risk in around 550 transactions involving SMEs valued at more than USD 500 million. ADB says this expansion will allow it to take bolder initiatives, such as working with local banks and increasing the use of technology to close financing gaps for SMEs. The expansion will also support ADB’s plans to diversify the reach and impact of its supply chain finance business to more challenging markets, which have the largest trade financing gaps relative to size.
“We’re really excited about this opportunity to move our supply chain finance business to a different, more innovative place,” said Steven Beck, Head of Trade and Supply Chain Finance at ADB. “When the SCFP started in 2012, supply chain was a completely new business for ADB, which traditionally focuses on infrastructure and financial institutions. We have gained experience during the pilot and now it’s time to be bolder and more creative in our efforts to close SME finance gaps”.