ADB to provide $200m to support strained supply chains in fight against COVID-19.

MANILA -- The Asian Development Bank (ADB) will make available $200 million through its Supply Chain Finance Program for companies manufacturing and distributing medicines and other items needed to combat the novel coronavirus (COVID-19).

Companies manufacturing and distributing products, including medicines and personal protective equipment, are increasingly strained as production and distribution ramp up to address COVID-19. 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 120-180 days, the $200 million facility could support more than $400 million of financing over the next 12 months. Fifty-fifty risk sharing from partner commercial banks could boost support under the facility to $800 million over the same period.

The funds will be made available through ADB's...