ASEAN KEY DESTINATIONS
ADB expands Trade Finance Program by $350 million
The Asian Development Bank (ADB) has expanded its Trade Finance Program (TFP) by $350 million, given the increasing market demand in the region.
In a statement, the multilateral lender said it increased the program to $1.35 billion after market demand for trade finance grew by over 50 percent in 2017.
According to the ADB, the program has already supported over 12,000 small and medium-sized enterprises (SMEs) in developing Asia since 2009.
The program provides loans and guarantees to financial institutions to support trade activities in the region.
“The increased headroom approved today by ADB’s board of directors will help us meet the huge surge we’ve seen in market demand for our trade finance products,” said Steven Beck, head of Trade and Supply Chain Finance at ADB.
“It is an exciting time for the team, which is known for its excellent client services, including transaction processing in 24 to 48 hours.”
Over the last two years, the program has funded 5,583 transactions worth $7.6 billion, with co-financing reaching $4.6 billion.
In the first four months of the year, the program guaranteed some 1,453 transactions valued at over $2 billion, of which $1.3 billion was co-financed with the private sector.
The program is available in 21 ADB member countries, including the Philippines with participating banks such as Australia and New Zealand Banking Group Limited Philippines, Bank of China Limited (Manila Branch), BNP Paribas (Manila Offshore Branch), Citibank N.A. Philippines, Deutsche Bank (Manila Branch), and Maybank Philippines Incorporated.
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