ADB, Swiss RE Boost Asian Trade Financing

As part of an innovative agreement to boost exports and imports in developing Asia, Switzerland’s reinsurance group Swiss Re will insure US$250 million of trade finance conducted via the Asian Development Bank’s (ADB) Trade Finance Programme.

 

The move marks the first time that the Swiss Re Group, through its commercial insurance unit Swiss Re Corporate Solutions, has provided insurance via a trade programme run by a multilateral development bank and also the first time ADB’s Trade Finance Programme has offset risk with a private insurance company.

 

The agreement with Swiss Re Corporate Solutions will allow ADB to provide even more trade finance support to the countries that need it most. Transactions under the Trade Finance Programme tend to be short term – usually less than 180 days - so financing can be rolled over. As such, the additional US$250 million in capacity through the arrangement with Swiss Re Corporate Solutions could result in around US$500 million in additional trade finance support per year for developing Asia.