The Asian Development Bank (ADB) and the Home Finance Company Limited (HFC Bank) today signed two trade finance agreements enabling ADB’s Trade Finance Program (TFP) to support up to $4 million of trade annually in Fiji. The agreements include a credit guarantee facility and a revolving credit facility.
The agreement was signed by Robert Jauncey, Regional Director for the Pacific, Raj Sharma, HFC Bank’s Acting Chief Executive Office, and Vilash Chand, HFC Bank’s Deputy Chairman in a ceremony in Suva.
“ADB is delighted to be partnering with HFC Bank through the Trade Finance Program,” said Edward Faber, Relationship Manager at ADB’s Trade Finance Program. “Through this facility, HFC Bank will be able to grow its trade finance operations and finance more importers and exporters, including small and medium-sized enterprises, to expand trade, growth, and jobs in Fiji.”
HFC Bank is the first bank in Fiji and the fourth bank in the Pacific to join ADB’s TFP. TFP has operated since 2004 across Asia, and in 2015, the Government of Australia provided financial assistance for TFP to expand to the Pacific.
“This partnership with ADB’s TFP will provide HFC Bank a solid platform in the international banking arena, while paving the way for our customers to venture into new global markets by using safe and reliable financial products like letters of credit and also obtain financing at competitive and attractive rates,” said Mr. Chand.
HFC Bank is a fully-fledged commercial bank serving corporate customers, small and medium-sized enterprises, as well as consumers. The bank was founded in 1962 and currently holds around 8% of market share in Fijian banking sector assets.
Fiji’s key exports include sugar, copra, and other agricultural goods and totaled $2.1 billion or 48% of GDP in 2015. Key imports are machinery, fuels, and food, accounting for $2.2 billion or 51% of GDP in 2015.
TFP, backed by ADB’s AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.
