Trade Finance Program Products
The TFP works exclusively through banks. The reason for this is two-fold:
- Banks are important intermediaries in trade and ADB does not want to displace them. It wants to support and broaden their ability to act as intermediaries, especially in the most challenging markets;
- ADB does not have the staff and extensive branch network of banks, so from a practical perspective ADB works with financial intermediaries (banks), leveraging resources, and complementing respective areas of strength.
ADB issues a credit guarantee (CG) in favor of participating confirming nank covering up to 100% of issuing bank risk within 24 hours of request. More than 75% of Trade Finance Program's portfolio is generated through this product.
- Guarantee to a bank in Germany covering 100% of a $600,000 payment risk on an Azerbaijan bank supporting import of fruit and vegetable drying equipment.
ADB enters into a risk participation agreement (RPA) with an accredited RPA bank allowing such to automatically bind the Trade Finance Program to 50% of issuing bank risk in support of trade transactions.
- 50% risk protection on a $16 million export of telecom equipment from the People’s Republic of China to Bangladesh.
Revolving credit facility
ADB provides loans directly to issuing banks in Trade Finance Program countries of operation to support pre-shipment and post-shipment trade transactions.
- $250,000 trade loan to a Sri Lanka bank to on-lend pre-export finance for the manufacture of garments for export to Europe and India
ADB enters into a risk distribution agreement with insurers, export credit agencies, and other entities developing credit appetite in Trade Finance Program (TFP) countries distributing and sharing issuing bank risk with them to leverage capital resources and credit limits.
- Cofinance and share risk with distribution partners in all TFP countries.
Trade and supply chain finance online courses
ADB’s Trade Finance Program (TFP) offers online courses free of charge to partner banks.
TFP is committed to providing partner banks with the knowledge required to give companies the best possible support to benefit from international trade. TFP has partnered with the International Chamber of Commerce (ICC) Academy to provide free online training to partner banks in trade and supply chain finance. The ICC Academy delivers online certification and professional development services to meet the educational needs of banks, corporations, and other organizations at the forefront of international trade.
The Global Trade Certificate (GTC) is an introduction to trade finance products – from letters of credit to supply chain financing techniques. It is an ideal program for professionals wanting to build an understanding of the nuts and bolts of global trade.
The Certified Trade Finance Professional (CTFP) is an advanced course providing in-depth knowledge of trade finance products and techniques. Using case studies of real-world scenarios, the program includes an intensive online program, with options to earn credits by attending ICC Academy accredited events. CTFP is recognized internationally by financial institutions, governments and regulators.
Feedback from course participants
"I have completed all the core courses in the CTFP and I am elated to mark the program excellent. The contents, presentation, and audio-visual materials are praiseworthy. It would be a great opportunity for trade finance professionals to go through such training program to enrich their knowledge and exposure. I am thankful to Almighty, Southeast Bank, ADB, and ICCA that it happened to me."
"The process of training is user-friendly, and because it was enhanced with video instructions, it was very convenient for better understanding. It was easy to use and grasp, and overall, I had a superb experience."
"In my view, as I am fresh to my job, the ICC Academy is helpful and practical. The lesson is easy to understand and supports my work a lot. Thanks to them, I can have my own answers for issues that I have been wondering about for a while, and the basic foundation to achieve more knowledge. "
ADB’s TFP is encouraging existing and potential issuing banks in its 22 developing member countries to take advantage of either or both of these programs by contacting:Nana KHURODZE (Ms) Relationship Manager, Trade Finance Program E-mail