Supply Chain Finance Program | Asian Development Bank

Supply Chain Finance Program

ADB’s Supply Chain Finance Program (SCFP) works with corporates and partner financial institutions (PFIs) to enhance access of small and medium-sized enterprises (SMEs) to working capital. ADB has launched the program by offering guarantees to partner financial institutions on post-shipment post-acceptance transactions.

Advantages of ADB's Supply Chain Finance Program to partner banks

  • Capital relief from AAA-rated ADB (up to 100% capital relief)
  • Leveraging risk capacity/limits
  • Extension of supply chain finance (SCF) offerings including additional limits to obligors, increase in supplier coverage, offering of new products, and extension of product lines to more phases of the supply chain

Post-shipment post-acceptance financing: How it works

Funds are provided to the supplier upon the delivery and acceptance of goods. The partner financial institution disburses funds to the supplier and receives payment at invoice due date. Partner financial institutions may bind ADB to funded or unfunded participations in SCF programs pre-approved by ADB. ADB’s risk assessment for approval of lines is predicated on information provided by partner financial institutions.

Program profile

Supplier SME from ADB's developing member country (DMC*):
  • Minimum of 2 years relationship with buyer
  • Solid production and delivery track record
Buyer Established corporate:
  • Rated at least BB or its equivalent
  • Located anywhere
Eligible goods Goods, commodities and equipment
Transactions supported Cross-border and domestic trade transactions
ADB participation type Loan or guarantee
Exposure limits Varies based on credit assessment
Tenor Up to 180 days
Coverage ADB takes up to 50% of the risk per transaction
(never exceeding PFI's exposure)
Currencies US dollar, Euro, Japanese yen, Chinese yuan
Local currency programs may be approved on a case-to-case basis
Cost No sign up cost, participation fees apply

*DMCs: Afghanistan, Armenia, Azerbaijan, Bangladesh, Bhutan, Cambodia, People’s Republic of China, Cook Islands, Fiji, Georgia, India, Indonesia, Kazakhstan, Kiribati, Kyrgyz Republic, Lao People’s Democratic Republic, Malaysia, Maldives, Marshall Islands, Federated States of Micronesia, Mongolia, Myanmar, Nauru, Nepal, Pakistan, Palau, Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Tajikistan, Thailand, Timor-Leste, Tonga, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, Viet Nam

Becoming a partner financial institution

Information requirements Provision of information sufficient for ADB to conduct risk assessment
Credit rating A- on a global scale (minimum)
Risk management Sound credit, operations, and documentations risk management systems
Competent and adequate risk management teams
SCF portfolio Post-shipment, post-acceptance financing (minimum)
SCF portfolio that match ADB objectives
SCF portfolio rating BB across all obligors on a global scale
SCF default ratio <2% across all products
IT infrastructure SCF clients use PFI's trade IT platform for SCF transactions
Supports PFI's ability to track and monitor SCF transactions
For inquiries, contact the following:
Jovilyn Cotio   +63 998 998 8202   E-mail
Sabine Oudart   +65 8518 0895   E-mail