As the deadly coronavirus was given a global pandemic status, the Asian Development Bank (ADB) on Thursday announced it will provide $200 million (about Rs 1,480 crore) to companies working to manufacture and distribute medicines, and other items that are required to combat the COVID-19.
The financial support will be given to selected companies within weeks via ADB’s Supply Chain Finance Program.
“The support will target companies in the supply chain that are critical to fighting the virus,” ADB Head of Trade and Supply Chain Finance Steven Beck said.
The aid from ADB, working in partnership with commercial banks, will provide such companies in Asia and the Pacific with additional working capital to meet expansion and other requirements.
“We’re looking to support companies that want to ramp up production and therefore need to engage suppliers,” he added.
Companies manufacturing and distributing products, including medicines and personal protective equipment, are increasingly strained as production and distribution ramp-up to address COVID-19, it said.
Given that a single pool of supply chain finance is typically used for a subsequent delivery over a period of 120-180 days, the $200 million facilities could support more than $400 million of financing over the next 12 months, the release said.
A total risk sharing from partner commercial banks could boost support under the facility to $800 million over the same period.
Earlier on February 7, ADB came up with a USD 2 million assistance for COVID-19 to enhance detection, prevention, and response in China and the Greater Mekong Subregion.
It was followed by another $2 million on February 26 to support response against the outbreak in all its developing members, and a CNY130 million ($18.6 million) private sector loan to Wuhan-based pharmaceutical distributor Jointown Pharmaceutical Group Co Ltd to support continuous supply of essential medicines and personal protective equipment.
So far, the COVID-19 has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories. China remains the hardest-hit with over 80,000 infections and 3,000 deaths.
(With innput from agencies)