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,
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
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
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