Firms involved in the manufacture and distribution of medicines and other items can tap into a $200- million fund from the Asian Development Bank (ADB) to help them cope and cushion the impact of the coronavirus disease 2019 (Covid-19) in their business.
In a news statement, ADB said the fund will be made available through its Supply Chain Finance Program provided to selected companies manufacturing and distributing medicines, and protective equipment within weeks.
The support from ADB, working in partnership with commercial banks, will provide such companies in Asia and the Pacific with additional working capital to meet expansion and other requirements.
“The support will target companies in the supply chain that are critical to fighting the virus,” said ADB’s Head of Trade and Supply Chain Finance Steven Beck. “We’re looking to support companies that want to ramp up production and, therefore, need to engage suppliers.”
Given that a single pool of supply chain finance is typically used for a subsequent delivery over a period of 120 to 180 days, the $200-million facility could support more than $400 million of financing over the next 12 months.
ADB said there is a 50-50 risk sharing from partner commercial banks could boost support under the facility to $800 million over the same period. The Manila-based multilateral development bank is closely monitoring the impact of Covid-19 on trade finance and is in regular contact with client banks to assess whether additional support is required.
Meanwhile, staff at the ADB headquarters are temporarily working from home following advice that a visitor to the bank has tested positive for the virus.
The ADB headquarters facility was closed on Thursday to undertake cleaning and disinfecting. Bank operations will continue. ADB management will make a decision in coming days on when to reopen the bank premises. “The safety of staff, visitors to the bank, and their families is of utmost importance to us. We are providing support to staff who interacted with the visitor,” said ADB Vice President for Administration and Corporate Management Deborah Stokes.
ADB’s response to Covid-19 to date has reached $4 million for China and the Greater Mekong Subregion, as well as the rest of its developing member-countries.
It has also extended a CNY130 million or $18.6 million worth of private sector loan, signed on February 25, to Wuhan, China-based pharmaceutical distributor Jointown Pharmaceutical Group Co. Ltd. to support the continued supply of essential medicines and personal protective equipment.