ADB & Deutsche Bank partner to boost SME financing in Asia-Pacific

Supply chain finance is pivotal in boosting trade, as it offers working capital to suppliers by capitalising on their associations with larger corporate entities. The partnership aims to support over $200 million in additional trade in Asia and the Pacific each year through short-term revolving facilities for supply chain finance transactions, ADB said in a press release.

This agreement is set to bolster Deutsche Bank’s capabilities to assist SMEs and other corporate clients by freeing up more capital for crucial economic sectors in the region.

TSCFP plays a significant role in helping banks in Asia and the Pacific enhance their supply chain finance offerings, particularly for SMEs. According to ADB estimates, there is a staggering gap of at least $2.5 trillion between the demand for trade finance and the available funds, with SMEs being the most adversely affected.

“Partnering with Deutsche Bank will allow companies, particularly SMEs, to access the global supply chain which can spur economic growth and contribute to job creation,” said ADB’s director general for private sector operations Suzanne Gaboury. “Partnerships like this one allow ADB to catalyse the private sector and mobilise capital for trade transactions that support development across the region.”

“We are proud to partner with ADB on this important initiative. Together, we will help smaller companies achieve growth through better access to supply chain financing. We believe this is important, as we are seeing increasing demand for this in the trade sector,” said Deutsche Bank’s head of trade finance and lending for Asia Pacific Matthew Moodey. 

Fibre2Fashion News Desk (DP)