India’s Axis Bank has signed an agreement with the Asian Development Bank (ADB) to support supply chain financing, the bank announced on its website Friday (April 8).
According to Axis, ADB will provide guarantees for Axis’ lending, with the program’s initial foundational ramp-up coming in at $150 million. While the program will be “sector agnostic” it will focus on ESG and “other priority sectors” to illustrate the two banks’ commitment to positive environmental impact in India.
“As the economy charts its recovery from the disruptions due to 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,” Axis said in the announcement.
The bank says the program will also meet the “surge in demand and expansion of operations in relevant sectors, thus enhancing their growth curves.”
Designed to provide accessible funding, the program covers a variety of supply chain financing products, including one-year working capital demand loans. Terms are perpetual and open-ended, Axis Bank said, meaning the program “has the flexibility to add innovative products as supply chain financing evolves over time.”
See also: Axis Bank Limited to Acquire Citi’s India Consumer Business
Last month, Axis Bank — the third largest bank in India — agreed to acquire Citibank India’s consumer banking businesses, including credit cards, retail banking, wealth management, and consumer loans.
With the acquisition, Axis also gained ownership of the consumer business of Citi’s non-banking financial company, Citicorp Finance (India) Limited, which is comprised of its asset-backed financing business, including commercial vehicle and construction equipment loans and its personal loans portfolio.
Read more: Airtel, Axis Grow India’s Digital Ecosystem Together
Also in March, Axis teamed up with communications solutions provider Bharti Airtel to offer a range of financial products and digital services — including a co-branded credit card and buy now, pay later (BNPL) offerings — all of them available to Airtel’s 340 million-plus customers.
