37909-024: REG: TRADE FINANCE FACILITATION PROGRAM

Project Data Sheet (PDS): Overview


Description

ADB's Trade Finance Program (TFP) fills market gaps in trade finance by providing guarantees and loans through over 200 partner banks in support of trade. The Program is comprised of the following products : (i) Credit Guarantee (CG) ADB guarantees up to 100% risk protection against nonpayment by approved participating banks, in support of trade transactions, responding within 24 hours of receiving a request. Through this support, the CG product establishes new partnerships between banks and companies, therefore increasing trade and access to challenging markets. (ii) Risk Participation Agreement (RPA) For banks with large and consistent trade finance volumes, ADB provides a maximum 50% risk protection against nonpayment of a financial obligation issued by a bank in support of a trade transaction. Unlike the CG product, the Risk Participation Agreement (RPA) provides risk protection on a portfolio basis, rather than on a transaction-by-transaction basis. The RPA provides partners with an innovative and highly efficient vehicle to manage portfolios of trade assets, providing banks with the capacity to support more companies in challenging markets. (iii) Revolving Credit Facility (RCF) ADB provides loans to eligible bank for on-lending to importers and exporters to finance trade-related transactions. This product is most frequently used for pre-export finanicng. For more information, please visit the TFP website at http://www.adb.org/tradefinance/ Read More

Country Regional
Borrower/Equity Investment Name TRADE FINANCE PROGRAM
Project Number 37909-024
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7186
Approval Date 31 Mar 2009
Closing Date 16 Oct 2013
Geographical Location Regional
Sector / Subsector Classification Finance
/ Trade finance
Safeguard Categories Environment: C
Resettlement: C
Indigenous People: C

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Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Project Data Sheets (PDS)

Responsible ADB Officer
Steven Beck
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Private Sector Financial Institutions Division

PDS Creation Date
10 May 2009

Last PDS Update
27 Mar 2013

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