BIDV and ADB elevate cooperation under the Trade and Supply Chain Finance Program

The signing of the Financing Bank Agreement with ADB helps expand cooperation opportunities between the two banks in implementing trade finance transactions.

Accordingly, BIDV can implement eligible trade finance transactions as stipulated in the Agreement (including guarantee transactions, letter of credit confirmation, letter of credit refund financing, import letter of credit refinancing loans, etc.) for other commercial banks on the basis of ADB's guarantee.

Guaranteed banks are Issuing Banks in the TSCFP Program, which can be guaranteed by ADB for their payment obligations to BIDV on the transaction maturity date, with a maximum guarantee value of up to 100% of the trade finance transaction value.

ADB's guarantee mechanism helps limit risks and enhance BIDV's financing capacity for ADB's member banking partners in trade transactions with potential new markets such as Bangladesh, Sri Lanka, Mongolia... and in the future, domestic trade finance transactions in the Vietnamese market.

The guarantee mechanism also creates conditions for BIDV to build a more competitive pricing policy when implementing trade finance services with partner banks, thereby indirectly supporting corporate customers to access finance from banks at reasonable costs in import-export transactions.

This cooperation contributes to diversifying the products and services that BIDV can provide to partner banks and corporate customers operating in the import-export sector as one of the leading important partners and having the most extensive cooperation with ADB in Vietnam.

Previously in 2009, BIDV signed the Issuing Bank Agreement with ADB under the TSCFP Program and has made many positive contributions to the development of the Program over the past 15 years.

With BIDV's new role as the Sponsoring Bank under the recently signed agreement, BIDV will continue to exploit new cooperation potentials, while continuing to affirm the commitment to accompany BIDV and ADB in promoting global trade flows in general and Asia Pacific in particular.

ADB's TSCFP currently has 279 participating member banks globally, including 79 Issuing Banks in 16 ADB member countries and 200 Confirming Banks in 90 countries around the world . The purpose of the TSCFP is to maximize the development impact of trade and supply chains in developing countries in Asia, by providing guarantees and loans to eligible banks. The program also focuses on building a more sustainable, resilient and transparent global Trade Finance supply chain.

BIDV has participated in the TSCFP Program since 2009 and has signed an Issuing Bank Agreement with ADB. Over the past 15 years of participating in the program, BIDV has been awarded the Leading Partner Bank in Vietnam by ADB TSCFP four times in 2016, 2017, 2018 and 2023; the Best SME Trade Finance Transaction Award in 2018; the Leading Partner Bank of the Decade Award and the Best Green Trade Finance Transaction Award in 2024.

Source: https://baodautu.vn/bidv-va-adb-nang-tam-hop-tac-trong-khuon-kho-chuong-trinh-tai-tro-thuong-mai-va-chuoi-cung-ung-d384731.html