Washington D.C., July 18, 2016
—IFC, a member of the World Bank Group, has launched a partnership with KiK, a large German discount apparel retailer, to provide financing incorporating incentives for improving environmental, health and safety and social standards to KiK suppliers in China. In the future, IFC and KiK expect to offer the program to suppliers in other Asian countries, such as Bangladesh, and in other regions.
IFC will offer suppliers short-term working capital financing, with tiered pricing and lower costs for those suppliers which score strong performance under KiK’s environmental and social monitoring ratings system. Local commercial banks in emerging markets often have limited tailored financial products for suppliers and exporters to finance sales without letters of credit. Banks that do offer supplier finance in developing countries often find it difficult to evaluate small- and medium-sized suppliers and typically do not have an incentive structure for improved performance of environmental, health and safety and social standards.
“This financial incentive for suppliers to improve environmental and social standards helps us broaden the range of our sustainability approach and enhances our cooperation with suppliers across the apparel industry”, said Darius Kauthe, KiK Managing Director of Finance.
Patrick J. Leahy, IFC Regional Industry Head for Manufacturing, Agribusiness and Services in Asia said, “We are excited to partner with KiK and broaden the reach of IFC’s GTSF program, which encourages companies to move beyond compliance to development of a strategy where environmental and social sustainability can be a driver of financial results.”
KiK and IFC launched this initiative in partnership with PrimeRevenue, a global leader in supply chain finance solutions, which runs the world’s largest multi-funder supply chain finance programs. The company’s cloud-based platform provides financing solutions to thousands of trading partners globally, in over 70 countries and in multiple currencies.
IFC provides financing to ready-made garment and footwear suppliers through its Global Trade Supplier Finance (GTSF) program, which provides working capital to suppliers backed by receivables from international buyers. Supplier finance is a scalable way for suppliers in emerging markets to access affordable financing for their receivables over a period defined by the terms of credit. Established in 2010, IFC’s GTSF program is a $500 million multicurrency investment and advisory program that provides short-term finance to emerging-market suppliers and small and midsized exporters.
Globally, the textile, clothing and footwear industry employs about 60 million people, many of them young women, according to estimates by the International Labor Organization (ILO). IFC invests in this sector because it is a provider of formal jobs for low-skilled workers that can make an important contribution to poverty reduction in developing countries. IFC’s support to the industry includes its engagement through the Better Work joint-venture program with the ILO. Better Work, established in 2007, aims to improve both compliance with labor standards and competitiveness in global supply chains.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
KiK stands for „Customer is King“, the leitmotiv since the foundation of the textile discounter in 1994. KiK offers women, men, kids and baby clothing in good quality at the lowest comparative price. In addition to clothing, the assortment includes gift articles, toys, beauty products, accessories and home textiles. With more than 21 000 employees and 3.400 stores in Germany, Austria, Czech Republic Slovenia, Hungary, the Slovak Republic, Croatia, Poland and The Netherlands the company generates a net revenue of 1.68 billion Euro. Among German textile retailers, KiK ranks among the top ten and has been offering its customers the possibility to shop online under
PrimeRevenue makes the global economy more efficient by unlocking cash in corporate financial supply chains. Headquartered in Atlanta, with offices in Prague, Hong Kong & London, PrimeRevenue manages $100 billion in transactions every year and frees up cash for over 20,000 clients, in over 70 countries to invest in their company’s future. Additional information about PrimeRevenue can be found at