fbpx 46920-014: REG: SUPPLY CHAIN FINANCE PROGRAM | Asian Development Bank

Regional: REG: SUPPLY CHAIN FINANCE PROGRAM

Nonsovereign (Private) Project | 46920-014 Status: Active
 
Project Name REG: SUPPLY CHAIN FINANCE PROGRAM
Project Number 46920-014
Borrower/Company SUPPLY CHAIN FINANCE PROGRAM
Country Regional
Location Regional
Type or Modality of Assistance
2939 Guarantee Ordinary capital resources USD 0.00 Committed
2939 Loan Ordinary capital resources USD 0.00 Committed
2939 Loan Ordinary capital resources USD 200.00 million Committed
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
Project Sponsor(s)
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.
Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
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
Approval -
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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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