TKB Bank established partnering relationships with the Asian Development Bank (ADB) and joined ADB’s Trade Finance Program (TFP). The respective Confirming Bank Agreement (CBA) between ADB and TKB was signed on 09th of November, 2017.
Within the CBA, the Asian Development Bank may issue guarantees in favour of TKB, covering the political and commercial payment risk of international trade finance transactions originated by the Issuing Banks in ADB countries of operation. The trade finance instruments covered by ADB’s TFP include: confirmed documentary letters of credit and standby letters of credit; payment guarantees, financing arrangements under letters of credit between TKB and Issuing Banks and other trade finance instruments.
Via the TFP ADB provides support to the international trade development in Asia Pacific, South Caucasus and Central Asia. ADB’s TFP works with more than 210 financial institutions from different countries. The volume of trade transactions supported by the ADB’s TFP reached more than US$25bln for the period of 2009 – 2016.
Joining the group of ADB’s TFP Confirming Banks will help TKB Bank to expand cooperation with financial institutions across ADB’s countries of operations, including the CIS and EEU (Eurasian Economic Union) regions, to which TKB gives high priority.
The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in Asia and Pacific regions. ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development. ADB is composed of 67 members (including Japan, the US, China, India, Australia, Indonesia, Canada, South Korea and others). The ADB’s HQ is located in Manila, Philippines. As of 30.06.2017 the ADB’s assets comprised US$178.9bln., equity – US$49.4bln. (callable capital – US$140.2bln.). The ADB is AAA-rated by S&P, Moody’s & Fitch.