UNB, Dhaka :
IFC, a member of the World Bank Group, has launched a trade finance facility with local apparel manufacturer MBM Group.
This is IFC’s first transaction in Bangladesh under the IFC Global Trade Supplier Finance program, and it will help MBM Group expand its international trade footprint, said a press release on Wednesday.
IFC will provide a supplier finance credit line to MBM Group. The company will receive funding from IFC backed by receivables from international buyer Levi Strauss& Co., freeing up working capital for the MBM Group.
Supplier finance is a scalable way for suppliers in emerging markets to access affordable financing for their receivables over a period defined by the terms of credit. The arrangement enables buyers to negotiate longer payment terms or better prices.
Wasim Rahman, Managing Director of MBM Group, said, “By partnering with IFC, we’re paving the way for others in the sector to avail of the facility and obtain affordable short-term finance.”
M Zubair Aslam, director of product development and sourcing at Levi Strauss & Co. said, “IFC’s trade supplier finance program helps our suppliers in emerging markets gain access to capital at reasonable rates, leading to new growth opportunities, positioning them better to compete in the global marketplace.”
Kyle F Kelhofer, IFC Country Manager for Bangladesh said, “The textile sector plays a central role in employment, particularly for women, in Bangladesh. Through IFC’s trade supplier finance program, suppliers like MBM Group will be able to access much-needed financing and grow their business while effectively managing risk.”
IFC launched this facility in Bangladesh in partnership with GTNexus, a cloud-based business network and platform for global trade and supply chain management. The platform enables participants to operate against a core, real-time set of information across multiple supply chain functions. This optimises the flow of goods, funds and trade information.
