ADB launches $200M facility for COVID-19 essential goods makers

The Asian Development Bank (ADB) is launching a $200 million loan facility to support companies involved in the manufacturing and distribution of essential goods needed to combat the coronavirus disease 2019 (COVID-19).

The initiative aims to provide additional working capital to companies facing strain as they scale up production and distribution of critical items like medicines and personal protective equipment.

ADB is partnering with commercial banks to channel these funds, which will target companies vital to the fight against the virus.

The $200 million facility, operating under ADB's supply chain finance program, could potentially support over $400 million in financing within the next 12 months.

With a 50-50 risk-sharing arrangement with partner commercial banks, the total support could reach $800 million over the same period.

Funds are expected to be disbursed to selected companies within weeks, enabling them to increase production and engage suppliers.

ADB is actively monitoring the impact of COVID-19 on trade finance and is assessing the need for further support to its developing members.