Published: 04:44 PM, 27 April 2017
ADB to provide $5m for Bangladeshi businesses
The Asian Development Bank (ADB) and the City Bank Limited today signed a loan agreement for US$5 million to support import and export financing for Bangladeshi businesses.
Under the agreement, ADB's Trade Finance Program (TFP) will provide trade loans to the City Bank to lend to local firms, said a press release here today.
"We are pleased to be growing the partnership with the City Bank and to support more trade, which is directly linked to job creation and economic growth," said TFP Relationship Manager for Bangladesh Edward Faber at the agreement signing ceremony at ADB office in the city.
"With ADB's backing, the City Bank will be able to increase its financial support to local companies, including small and medium-sized businesses," he added.
The City Bank became a partner bank in ADB's TFP in early 2016 under the TFP's guarantee product. Since then, ADB and the City Bank have worked on 8 transactions together involving $15 million.
The TFP has been operating in Bangladesh since 2005 and currently works with 14 local partner banks. To date, the program has supported over 1,700 transactions, for almost $2.5 billion in trade in Bangladesh.
"The City Bank signed the Trade Finance Guarantee Facility Agreement last year and our relationship with ADB has been stronger since then. In the future, we hope to explore more opportunities for cooperation between the two institutions," said the City Bank Managing Director and CEO Sohail R. K. Hussain.
"As City Bank's vision is to be the financial supermarket, we believe that our participation in this revolving credit agreement will help us offer diversified and competitive trade finance products and services to our customers," he added.
The ADB TFP, backed by ADB's AAA credit rating, 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 24-hour response time, the program 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.
TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and fraud prevention.
Since 2009, TFP has supported more than 9,200 small and medium-size businesses across developing Asia - through over 13,000 transactions valued at over $25.5 billion - in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.
