MANILA — The Asian Development Bank (ADB) has signed a deal with Axis Bank Limited (Axis Bank), worth up to $150 million, to make it easier for small and medium-sized enterprises (SMEs) in India to participate in trade through environmental and socially sustainable supply chains.
The deal will assist Axis Bank in amplifying its support of SMEs, freeing up capital which will increase the amount of support it can lend to sectors identified by Axis Bank as the most important to sustainability.
“This milestone project is ADB’s first supply chain finance transaction in India, and we are happy to partner with Axis Bank, which shares similar values in promoting sustainable supply chains in the region,” said ADB Trade and Supply Chain Finance Head Steven Beck. “ADB’s expansion of our supply chain finance program in India can contribute to our shared interest in developing business growth that addresses environmental, social, and governance priorities.”
“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.” said Axis Bank Managing Director and CEO Amitabh Chaudhry.
Axis Bank is India’s third-largest private sector bank with sector coverage from SMEs, large and mid-corporates, agriculture, and retail businesses. With its 4,700 domestic branches (including extension counters) and 11,060 ATMs across the country as of 31 December 2021, the network of Axis Bank spreads across 2,665 centers.
Backed by ADB’s AAA credit rating, TSCFP provides loans and guarantees to more than 200 partner banks to support trade, creating import and export opportunities for enterprises across Asia and the Pacific.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.