Colombo, Sri Lanka, November 06, 2013
—IFC, a member of the World Bank Group has partnered with local apparel manufacturer MAS Active to boost trade opportunities for Sri Lanka’s apparel industry through a trade supplier finance facility.
IFC’s Global Trade Supplier Finance program will provide a supplier finance credit line to MAS Holdings. This means IFC will provide loans to MAS against receivables payable by selected international buyers.
“In the fast-changing globally competitive apparel industry, suppliers like MAS need to continuously strengthen flexibility and responsiveness, while managing costs. IFC’s trade supplier finance program brings greater flexibility to MAS Active’s operations while enhancing liquidity of the company,” said Sudarshan Ahangama, Group Finance Director, MAS Holdings.
Supplier finance is a scalable and manageable way for suppliers in emerging markets to avail of affordable financing against receivables from customers for the period of the credit given to the customer. The product offers suppliers an additional source of flexible, affordable funding and may allow the buyer to negotiate longer payment terms or better prices.
“Financing production cycles can drain working capital and borrowing capacity that suppliers need to operate their businesses,” said Georgina Baker, IFC Director for Global Trade and Supply Chain Solutions. “Through IFC’s trade supplier finance program, suppliers like MAS Holdings will be able to access much-needed financing and grow their business while effectively managing risk.”
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. The program also helps banks that offer supply chain finance increase their presence in emerging markets.
MAS Active is the provider of competition sportswear and fashion leisurewear in the region, supplying to premium brands in the USA and Europe. It produces competition wear for international sporting events through its dedicated sportswear plants.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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