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

Regions
  • East Asia and Pacific
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 22, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Other Related Projects
Primary Source

Original disclosure @ ADB website

Updated in EWS May 23, 2024

Disclosed by Bank Jun 12, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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."

According to the ADB website, this project is part of the bank's COVID-19 response.  For more information about the ADB's COVID-19 response, please refer to: https://www.adb.org/what-we-do/covid19-coronavirus.

 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project risks as follows:

Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The project supports commercial banks' trade finance and supply chain operations in ADB's developing member countries. The names of specific participating financial institutions have not been disclosed by the banks.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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

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