Kochi, April 11. Axis Bank, the third-largest private sector bank in India, has signed a Partial Guarantee Facility Agreement (PGFA) with the Asian Development Bank (ADB) to support supply chain financing for impact sectors, under which ADB will provide guarantees (variable) to the lending done by Axis Bank.
The program is scalable, with an initial foundational ramp up of nearly USD 150 million. Though sector agnostic, the program will have special focus on ESG and other priority sectors, re-affirming both institutions’ commitments to positive developmental & environmental impact in the country.
On the partnership, Amitabh Chaudhry, MD & CEO, Axis Bank said: “At Axis Bank, we are committed to providing accessible funding & solutions, supporting a more inclusive trade environment and helping our corporate/SME clients with all their business needs through innovative financial products and tailored lending solutions. We are keen to provide integrated holistic financial services, thereby becoming a part of their growth journeys. The enablement derived from the supply chain financing programme with ADB will further boost our propositions and fortify our stronghold as a truly universal bank.”
As the economy charts its recovery from the disruptions due to pandemic, and adapts to the under-currents of the ongoing global conflicts, this program stands to support the sectors rampaged by bottlenecks, shortages and delays, by providing major intervention in terms of supply chain finance. It will also complement the surge in demand and expansion of operations in relevant sectors, thus enhancing their growth curves.
Steven Beck, Head – Trade and Supply Chain Finance Program, Asian Development Bank said: “We are very pleased to work with Axis to lend more support to SMEs, contribute to economic growth, and create the jobs that improve people’s lives.”
Underpinned by the intent to provide accessible funding, the program covers various supply chain financing product variants, including one-year working capital demand loans. With the terms of engagement being perpetual and open-ended, the program has the flexibility to add innovative products as supply chain financing evolves over time.
