Supply Chain Finance Program (Additional Financing) (ADB-46920-015)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 22, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Sep 9, 2019

Disclosed by Bank Jun 12, 2019


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Project Description

According to the bank website, "The Board of Directors approved the Supply Chain Finance Program (SCFP) on a pilot basis in November 2012 with a revolving limit of $200 million, under which ADB provides guarantees and funding through partner financial institutions (PFIs) to support developing member countries' (DMC) small and medium-sized enterprises (SMEs)1. Technical assistance of $800,000 was approved in 2013 and used primarily to engage consultants to help implement the program.2 Obligations and liabilities under the Program are to be discharged by 31 August 2018 if the program is not renewed.

This paper seeks the approval of the Board of Directors of the Asian Development Bank (ADB) for a major change in scope and amount for the Supply Chain Finance Program (SCFP or the Program). The proposed changes are derived from lessons learned during the SCFP's pilot phase, a market survey, and are aligned with the Program's developmental objectives. They are: (i) remove the program expiry date of 31 August 2018; (ii) increase the overall exposure limit from $200 million to $300 million; and (iii) broaden parameters to enhance the Program's scope and development impact by supporting innovative structures that may involve more risk."

Investment Description
  • Asian Development Bank (ADB)
Contact Information

Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Beck, Steven

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main