Published on 12:00 AM, April 01, 2016

ADB signs $40m trade finance deals with local banks

From left (seated), Faruq M Ahmed, acting managing director and CEO of City Bank; Shahid Hossain, managing director of Southeast Bank; Steven Beck, head of the ADB's trade finance programme; Oleg Tonkonojenkov, deputy country director of ADB's Bangladesh resident mission; Anis A Khan, managing director and CEO of Mutual Trust Bank, and Md Abdul Halim Chowdhury, managing director and CEO of Pubali Bank, pose at the agreements signing ceremony in Dhaka yesterday. Photo: ADB
Star Business Report

The Asian Development Bank yesterday signed trade finance programme (TFP) agreements worth $40 million with four Bangladeshi banks to support exporters, importers and small and medium enterprises.

The local partners are City Bank, Mutual Trust Bank, Pubali Bank, and Southeast Bank.

“Under these agreements, the ADB and our Bangladeshi partners will provide loans and guarantees to support export and import companies in Bangladesh, including small and medium enterprises,” said Steven Beck, head of trade finance of the Manila-based multilateral lender.

“The agreements will also help spur economic growth and create jobs,” he said in a statement.

The City, Mutual Trust, and Pubali are all new banks joining the TFP, while Southeast Bank — which is already a part of the programme — has signed a new agreement for a funded facility.

“The 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, TFP 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 the TFP in Bangladesh will reach 15.

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

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