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ADB inks $40m trade finance deal with four banks

  • Published at 06:45 pm March 31st, 2016
ADB inks $40m trade finance deal with four banks

The Asian Development Bank (ADB) and four local banks have signed trade finance programme agreements for a total value of $40 million.

Under the agreements, ADB and the City Bank, Mutual Trust Bank, Pubali Bank and Southeast Bank will provide loans and guarantees to support exporting and importing companies in Bangladesh, including small and medium-size enterprises, said ADB in a statement yesterday.

Steven Beck, ADB’s head of trade finance, said: “This agreement will help create economic growth and jobs.”

Southeast Bank is already a part of the programme while the three others are joining the trade finance programme (TFP) for the first time.

“Bangladesh is a very active country under ADB’s Trade Finance Programme. ADB’s TFP has had good experiences working with banks in Bangladesh and we are pleased to be expanding our relationships and coverage here. We look forward to continuing this trend,” said Edward Faber, Trade Finance Programme relationship manager for Bangladesh.

The programme has provided more than $2.2 billion in trade finance support in Bangladesh since 2009 through more than 1,400 transactions.

With these latest agreements, the total number of banks under TFP in Bangladesh reaches 15.

Backed by ADB’s AAA credit rating, the TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.

With dedicated trade finance specialists and a response time of 24 hours, the programme has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.

Since 2009, TFP has supported more than 7,000 small and medium-size enterprises across the region, with about 10,000 transactions valued at over $20 billion in sectors ranging from commodities and capital goods to medical supplies and consumer goods.