(05 August 2020 – Asia) HSBC has partnered with the Asian Development Bank (ADB) to establish a supply chain finance programme, supporting businesses that provide COVID-19-related supplies. This agreement could enable up to US$1.2 billion per annum of additional trade by small and medium-sized enterprises (SMEs) in Asia.
The agreement has led to the mapping of more than 10,000 Covid-19 suppliers across the region. This transparency into medical supply chains will enable the financing of critical supplies that may otherwise not be possible.
“Trade has a critical role to play in both the frontline fight against COVID-19 and in supporting the global recovery,” said HSBC global head of trade and receivables finance Natalie Blyth. “This agreement will help ensure that trade finance gets to where it is needed and when to support the production and distribution of essential medical supplies and the return to growth.”
“Partnerships, like this one with HSBC, are critical to closing market gaps, ensuring that we fuel growth necessary to build back the global economy, create jobs and prosperity,” said ADB head of trade and supply chain finance program Steve Beck. “This partnership will complement ADB’s ongoing efforts to map the supply chain for products critical to the fight against COVID-19, and to support trade flows that will drive the recovery.”
East and Partners’ latest research reveals that reviewing funding requirements and solutions available is one of the key areas of focus for treasury in Asia currently as they reassess their supply chains and networks in the new paradigm.