In a signing ceremony taking place today, BNY Mellon will become a partner bank in the Asian Development Bank’s (ADB) Trade Finance Program (TFP). The agreement covers a range of trade finance instruments, including loans and guarantees, and will allow BNY Mellon to continue its strong growth in Asian trade services by facilitating support to a wider range of customers, including small and medium-sized enterprises (SMEs).
Backed by the ADB’s AAA credit rating, the TFP enables companies throughout Asia to engage in import and export activities through the provision of loans and guarantees by ADB’s partner banks. Since 2009, the program has supported over 9,200 SMEs across developing Asia – totaling over 13,000 transactions valued at over US$25.5 billion. Sectors range from commodities and capital goods, to medical supplies and consumer goods.
“The ADB’s extensive work within Asia has provided immense opportunity for SMEs within the region – helping to alleviate Asia’s US$692 billion worth of unmet trade financing demand,” said Dominic Broom, BNY Mellon’s Head of Trade Business Development. “Over half of our trade financing is facilitated within Asia, and we’re thrilled to further contribute to Asia’s economic growth through the TFP.”
Steve Beck, ADB’s Head of Trade Finance, said: “Trade finance is a critical component to Asia’s economic growth and the global economy, especially to small and medium-sized enterprises. To further support interregional and global trade through our Trade Finance Program, it is imperative to partner with global leading banks like BNY Mellon to increase trade and trade finance in Asia. As one of the world’s most respected trade finance banks, we very much welcome this partnership with BNY Mellon.”
Joon Kim, BNY Mellon’s Head of Trade Product and Portfolio Management, said: “Given the increasing importance of providing trade finance support, our signing the TFP agreement and cementing of our partnership with ADB gives us an additional trade finance channel and capacity through which to assist our correspondent banks and their respective trade clients. We look forward to utilizing the program actively.”
The signing will take place at BNY Mellon’s stand (I12) at Sibos in Toronto.