International Finance Corporation has launched a trade finance facility with local apparel manufacturer MBM Group under which IFC will provide a supplier finance credit line to the Group.
This is IFC’s first transaction in Bangladesh under the IFC Global Trade Supplier Finance programme,and it will help MBM Group expand its international trade footprint, said a press release.
The company will receive funding from IFC backed by receivables from international buyer Levi Strauss& Co, freeing up working capital for the MBM Group. Supplier finance is a scalable way for suppliers in emerging markets to access affordable financing for their receivables over a period defined by the terms of credit. The arrangement enables buyers to negotiate longer payment terms or better prices.
Wasim Rahman, Managing Director of MBM Group, said, “By partnering with IFC, we are paving the way for others in the sector to avail of the facility and obtain affordable short-term finance.”
M Zubair Aslam, director of product development and sourcing at Levi Strauss & Co. said, “IFC’s trade supplier finance programme helps our suppliers in emerging markets gain access to capital at reasonable rates, leading to new growth opportunities, positioning them better to compete in the global marketplace.”
Kyle F Kelhofer, IFC Country Manager for Bangladesh said, “Through IFC’s trade supplier finance programme, suppliers like MBM Group will be able to access much-needed financing and grow their business while effectively managing risk.”