Mizuho and IFC launch $1 billion Asia-Pacific trade finance facility
The partners plan to share risk on loans tied to suppliers’ orders and invoices.
Mizuho Bank and the International Finance Corporation announced a $1 billion supply chain finance facility for Asia-Pacific markets in September. IFC will provide up to $500 million in risk sharing over three years.
The facility covers products such as financing against receivables and funding before shipment. A supplier that has received an order may need cash to purchase materials or pay staff well before its customer settles the invoice.
The partners are targeting suppliers and distributors, including small and medium-sized businesses. The size of the facility describes the financing portfolio the partners intend to support over time.