REG: SUPPLY CHAIN FINANCE PROGRAM
|Project Name||REG: SUPPLY CHAIN FINANCE PROGRAM|
|Borrower/Company||SUPPLY CHAIN FINANCE PROGRAM
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Banking systems and nonbank financial institutions
|Gender Equity and Mainstreaming||No gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Beck, Steven|
|Description||REG: SUPPLY CHAIN FINANCE PROGRAM|
|Objectives and Scope||The Supply Chain Finance Program (SCFP) provides guarantees and loans, mostly through SCFP partner banks, to support small and medium sized businesses (SMEs) operating in supply chains. SCFP aims to increase access to supply chain finance in developing Asia, including in countries when supply chain finance does not exist or is in its infancy. SCFP seeks to encourage financial institutions to move deeper into the supply chain by providing support to SMEs earlier in the business cycle. More information can be found at www.adb.org/scfp.|
|Status of Development Objectives||
Number of transactions to date: 637
Value of transactions to date: $532 million;
Cofinancing $266 million (sub-set of $ value above);
Partner financial institutions: BNP Paribas, Deutsche Bank, and Standard Chartered Bank;
Default or guarantee claims: None
In addition to transactions, SCFP undertook several capacity-building and training initiatives to introduce supply chain finance to local banks in ADB's developing member countries.
|Status of Operation/Construction||Supply chain finance was a completely new area for ADB, which focuses on infrastructure and financial institutions transactions. ADB gained market knowledge as well as credit assessment and operational experience during initial program implementation. After implementing SCFP prudently in the first phase of implementation, ADB is expanding the program to more challenging countries and is seeking local bank partnerships.|
|Linkage to Country/Regional Strategy||
ADB's strategic priorities, as set forth in the Midterm Review of Strategy 2020, include finance sector development, poverty reduction, and inclusive economic growth. ADB's approach to inclusive economic growth emphasizes inclusive finance by improving and expanding access to finance for SMEs.
Inclusive finance is one of the three pillars of ADB's Financial Sector Operational Plan, which was reaffirmed in its 2017 review. One component of the strategic focus of ADB's Private Sector Operations Department is to mobilize third-party capital credit through credit enhancement products and risk transfer arrangements. The program facilitates this by encouraging private sector contributions to supply chain finance and enabling ADB to provide support to SMEs not traditionally considered bankable.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||FI (treated as category C)|
|Involuntary Resettlement||FI (treated as category C)|
|Indigenous Peoples||FI (treated as category C)|
|Stakeholder Communication, Participation, and Consultation||Government's no objection to the proposed assistance will be obtained from any government within whose territory financing under the program will be provided.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||11 Jun 2012|
|Credit Committee Meeting||07 Aug 2012|
|PDS Creation Date||18 Oct 2012|
|Last PDS Update||28 Mar 2018|
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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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Supply Chain Finance Program (Additional Financing): Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Oct 2020|
|Proposed Supply Chain Finance Program||Reports and Recommendations of the President||Oct 2012|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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