HSBC Partners with the Asian Development Bank to Provide USD1.2bn Funding Lifeline to Asian Supply Chains

Published 

HSBC has partnered with the Asian Development Bank (ADB) to establish a supply chain financing programme primarily to support companies providing Covid-19 related supplies. This agreement could enable up to USD1.2bn per annum of additional trade by Asian SMEs.

HSBC, in partnership with the ADB, has already mapped over 10,000 critical Covid-19 suppliers. The resulting visibility ensures that targeted financing will support provision of critical medical supplies that wouldn’t otherwise be available.

The move comes as the B20, the WTO and the ICC have issued a joint statement warning about a trade finance shortfall of between USD2 trillion and USD5 trillion that could impede the ability of trade to support the post Covid-19 economic recovery. In developing countries, trade finance shortages can obstruct imports of essential goods as well as the export of key income-generating products. This disproportionately affects Micro, Small and Medium-sized Enterprises (MSMEs) that represent the bulk of employment in the Asia Pacific region.

“Trade has a critical role to play in both the frontline fight against Covid-19 and in supporting the global recovery,” said Natalie Blyth, Global Head of Trade and Receivables finance at HSBC. “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.”

ADB has boosted its capacity to support trade and supply chains with more money and flexibility for its USD2.4 billion trade and supply chain finance programmes. Trade finance deals and partnerships such as these will help to bridge the trade finance gap and enable ADB member countries to counter the severe health and macroeconomic impacts caused by Covid-19.

“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 Head of ADB’s 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.”

Most recent episodes

Trade Finance Vision: J.P. Morgan and Cleareye Collaboration Plots Future Path

Eleanor Hill (TMI) is joined by Natasha Condon (J.P. Morgan Payments) to discuss the latest trends and innovations emerging from the trade finance arena. Natasha considers how treasurers can improve the efficiency of their working capital, and examines why it remains critical for banks and fintechs to...

29:01

Audio TMI - ESG: Time to Decide

The pressure to comply with ESG initiatives is being felt by corporates like never before, with ESG-compliance a common concern among treasury departments. TMI talks to Lavinia Bauerochse (Deutsche Bank) about treasury’s ...

11:41

Embedded Finance: A 101 Guide for Treasurers

Our latest TreasuryCast guest, Aman Narain (HSBC) sits down with TMI's Eleanor Hill to consider the ways in which treasury might be impacted by embedded finance. In this podcast, Aman explains the differences between embedded finance and BaaS, shares his hopes for the future in this space, and provides...

12:58

Audio TMI - A Modern, Agile, and Efficient Machine

UniCredit's Raphael Barisaac and Massimo Ortino explain how the fir...

What’s on the Horizon for Short-term Investments?

The treasury community has risen to the ongoing challenge of rising interest rates and inflation, with corporate cash serving as the sought-after safety net. Here, Daniel Farrell (Northern Trust Asset Management) and Karl Adams (ICD) consider how the latest MMF reform proposals affect short-term...

39:27

Transitioning a Corporate from LIBOR to CME Term SOFR

The loans market has predominantly moved to forward looking term rates, and both corporate borrowers and global lenders are increasingly turning to CME Term SOFR as the forward looking risk-free benchmarks to support their activities. Listen to this podcast, featuring Gavin Lee, Marco Bianchi (CME...

37:16

HSBC’s Sibos Spotlight – View from Sibos

TMI's Eleanor Hill invites Neil Atkinson, Nadine Lagarmitte, and Vinay Mendonca (HSBC) to discuss the critical treasury topics and conversations highlighted at this year's Sibos conference in Amsterdam. Amongst a wealth of market insights, our guests consider the most critical developments emerging from...

38:40

ECB’s Targeted TLTRO Tweaks Set to Drain Excess Market Liquidity

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 7th...

05:42

Asian Treasury Trends: Learnings and Opportunities

Former corporate treasury professional, Valerie Heng (Deloitte) joins Eleanor Hill to discuss the hot topic of treasury transformation, alongside other key shifts treasurers should be aware of. In this podcast, Valerie uses her knowledge of the Asian Treasury market to explain how the role of the...

20:27