46920-014: REG: SUPPLY CHAIN FINANCE PROGRAM

Project Data Sheet (PDS): Details


Description

This will be ADB s first supply chain finance (SCF) program. It entails the provision of guarantees to and debt financing (both without a government guarantee) through partner financial insitutions (PFIs) to support payments throughout the supply chain. The program limit is $200 million at any time on a revolving basis. As the program will share at least 50% of risks with PFIs, it will bring at least $400 million in new support to companies operating in supply chains. Given the short maturities involved (often as short as 60 days), it is anticipated that the program will generate on a cumulative basis approximately $1 billion of additional support every year it is operational.

Objectives and Scope

The program aims to offer an efficient means of managing financial supply chains that would improve access to affordable working capital, and in some cases provide access to finance for companies in developing member countries that would otherwise not be considered as bankable. The program will: (i) enable traditionally non-bankable companies to receive finance; (ii) improve cash flow to enable growth and job creation; and (iii) encourage more financial institutions to develop and broaden supply chain finance (SCF).

Implementation Progress

Description of Project Outputs

The key output will be the establishment of ADB's SCF Program for the purpose of improving DMC company access to working capital. Related outputs include enrollment of five PFIs by 2015, and a 15% increase in the number of DMC companies supported under PFI supply chain programs by 2018 based on baseline and target figures that will be finalized upon the signing of agreements with PFIs.

Safeguard Categories

Environment: FI
Involuntary Resettlement: FI
Indigenous Peoples: FI



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.

Project Data Sheets (PDS)

Timetable

Concept Clearance
11 Jun 2012

Fact-finding
19 Jun 2012 to 20 Jun 2012

Private Sector Credit Committee Meeting
11 Jun 2012

Board Approval
08 Nov 2012

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