Axis Bank on Thursday said it has collaborated with Asian Development Bank (ADB) for a partial guarantee program with initial outlay of USD 150 million (Rs 1,139.85 crore), aimed at supporting supply chain financing for impact sectors.
Special focus will be towards ESG and priority sectors.
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Axis Bank has signed a partial guarantee facility agreement (PGFA) with ADB to support supply chain financing for impact sectors, under which ADB will provide guarantees (variable) to the lending done by Axis Bank, the bank said in a release.
The program is scalable, with an initial foundational ramp-up of nearly USD 150 million, it said.
Axis Bank said even as the program is sector agnostic, it will have special focus on ESG (environmental, social and governance) and other priority sectors, re-affirming both institutions’ commitments to positive developmental and environmental impact in the country.
“At Axis Bank, we are committed to providing accessible funding and 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 program with ADB will further boost our propositions and fortify our stronghold as a truly universal bank,” Amitabh Chaudhry, MD & CEO, Axis Bank said.
As the economy charts its recovery from the disruptions due to the 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.
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, Axis Bank said.