Germany’s Commerzbank and the Netherland Development Finance Company (FMO) have both signed separate risk sharing agreements with the Asian Development Bank (ADB).
Both agreements are part of ADB’s trade finance facilitation programme (TFFP), a US$1bn initiative designed to provide loans and guarantees through, and in conjunction with, international banks and ADB member developing country banks.
Commerzbank’s agreement sees the German institution and ADB set to share risks in developing Asia, including Bangladesh, Indonesia, Kyrgyz Republic, Mongolia, Pakistan, Philippine, Sri Lanka, Tajikistan and Vietnam.
Christof Gabriel Maetze, divisional board member and global head of financial institutions at Commerzbank, remarks: “Commerzbank is delighted to participate in this partnership with ADB. We are convinced that this partnership will further strengthen our trade finance activities in prospering Asia, which we consider as one of our key markets.
“It will also help consolidate our global position as one of the leading banks in trade finance.”
This comes as part of FMO’s continued effort to grow in Asia, as Bas Rekvelt, senior investment officer financial institutions, Asia, at FMO explains to GTR: “FMO is continuously looking to expand into Asia and especially in low income countries. FMO focuses on financial institutions, clean energy projects and housing projects. The risk participation agreement with ADB fits perfectly into our strategy as it increases FMO’s exposure in the financial sector in low income countries.”
Last Updated May 05, 2010
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