Fiji's Home Finance Company Bank (HFC Bank) has signed two trade finance agreements with the Asian Development Bank (ADB) aimed at improving its access to letters of credit (L/Cs) and other trade finance offerings.

HFC Bank reckons that signing up to the ADB's Trade Finance Programme (TFP) will support up to US$4 million of trade annually in Fiji. The agreements include a credit guarantee facility and a revolving credit facility.

L/C benefits

Backed by ADB's AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout the Asia-Pacific region to engage in import and export activities.

"This partnership with ADB's TFP will provide HFC Bank a solid platform in the international banking arena, while paving the way for our customers to venture into new global markets by using safe and reliable financial products like L/Cs and also obtain financing at competitive and attractive rates," according to HFC Bank's deputy chairman, Vilash Chand.

Fijian first

HFC Bank is the first bank in Fiji and the fourth bank in the Pacific to join ADB's TFP.

The programme has operated since 2004 across Asia and in 2015, the Australian government provided financial assistance for TFP to expand into the Pacific.

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