IFC and SMBC launch $500 million supply chain finance facility for emerging-market SMEs
IFC commits up to $250 million and SMBC the remaining half to a supply chain finance facility aimed at small suppliers in emerging markets.
The story in focus
IFC and SMBC announced a $500 million supply chain finance facility for small and medium-sized businesses in emerging markets. IFC will commit up to $250 million, with SMBC providing the other half on equal terms. Credit is anchored to large buyers rather than suppliers, with a Latin American food manufacturer as the first anchor buyer.
- IFC commits up to $250 million of the $500 million facility; SMBC contributes the remaining half on equal terms.
- Credit is anchored to the financial strength of large buyers, allowing suppliers to receive early payment on approved invoices.
- A large food manufacturer in Latin America is the first anchor buyer; the model is built to expand to more buyers and markets.
How the facility is structured
The International Finance Corporation, part of the World Bank Group, and SMBC announced the facility in Miami. It totals $500 million, with IFC committing up to $250 million in direct funding and SMBC contributing the remaining half on equal terms.
The program anchors credit to the financial strength of large buyers rather than to suppliers themselves. Smaller businesses, many of them SMEs, can then receive early payment on invoices at rates they could not access on their own. IFC says its funded participation adds credit capacity, allowing SMBC to serve more suppliers at longer tenors and higher volumes than would be commercially viable without a development finance partner.
First buyer and expansion plans
The first anchor buyer joining the facility is a large food manufacturer in Latin America. The announcement states the model was built from the outset to expand to additional buyers across sectors and markets.
The facility was structured through IFC's Global Supply Chain Finance program, which IFC says has supported more than $3.8 billion in supplier finance transactions since its launch in 2023.
Who the program targets
The announcement points to the MSME finance gap, which it describes as running into the trillions and constraining investment, expansion and job creation. It says many businesses are excluded from formal banking not for lack of creditworthiness but for lack of a documented financial track record.
The facility aims to give suppliers a consistent, verifiable transaction history, starting with early payment within days of a buyer approving an invoice, with the stated goal of helping them access broader banking services over time. Nathalie Louat, IFC's global director for trade and supply chain finance, said the partnership with SMBC is intended to reach suppliers the market alone would not serve.
How much is IFC committing to the facility?
IFC is committing up to $250 million in direct funding, half of the $500 million total. SMBC is contributing the remaining half on equal terms.
Sources & further reading
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