IFC, a member of the World Bank Group, launched a trade supplier finance facility with leading apparel exporting company Brandix. The first such facility in South Asia, the IFC Global Trade Supplier Finance program will help Brandix boost international trade opportunities.
IFC, through the facility, will provide a supplier finance credit line to Brandix Lanka Limited. Brandix will receive funding from IFC against receivables of selected international buyers. This provides working capital directly to the company.
"We are delighted to work with IFC in their very first trade supplier finance facility in South Asia," said Trevine Jayasekara,Brandix Finance Director. "At Brandix we are inspired by pioneering new concepts. In this context by partnering with IFC in rolling out this program, we will also pave the way for others in the sector to avail of the facility."
Supplier finance is a scalable and manageable way for suppliers in emerging markets to access affordable financing for their receivables from retailers for the period of the extended terms of credit. This product offers suppliers an additional source of flexible, affordable funding and may allow the buyer to negotiate longer payment terms or better prices.
"As IFC's portfolio grows in Sri Lanka, we are looking at new ways to support companies involved in vital export sectors for the country," said Adam Sack, IFC Country Manager for Sri Lanka and Maldives. "IFC's first supplier finance facility in South Asia will provide short-term financing for Brandix, and help boost international trade."
Established in 2010, the IFC Global Trade Supplier Finance program is a $500 million multicurrency investment and advisory program that provides short-term finance to emerging-market suppliers and small and midsize exporters. Under the program, IFC also helps banks that offer supply chain finance increase their presence in emerging markets.