British multinational bank, Standard Chartered this week said it has set up a $1 billion credit facility to fund companies whose production activities are crucial in responding to the coronavirus outbreak.
Companies engaged in the production of essential goods and services such as manufacturers and distributors in the pharmaceutical industry and healthcare providers are eligible to benefit from the credit facility, a statement on the company’s website said.
The scope also covers companies planning to switch into making products that are in high demand to fight the global pandemic, Standard Chartered said, citing goods such as ventilators, face masks, protective equipment, sanitizers, and other consumables.
“Clearly there’s a cost for companies to switch into these hugely in-demand items, so it’s an area where we can help them get up and running more quickly,” said Simon Cooper, chief executive for corporate, commercial and institutional banking. “At the same time, we want to make sure that existing manufacturers and service providers get the support they need.”
Standard Chartered is also trying to identify companies that may wish to switch into or add anti-virus products to their output but have not indicated that they will do so at this stage. “Our industry teams are looking across our client base and, given our understanding of clients’ current manufacturing processes, we’re assessing which companies might want to consider adding these items to their production line,” Simon added.
All financing will be subject to companies having received regulatory approvals to manufacture the goods, the bank said, adding that it will “continue to serve all of its clients during what is a challenging period for all companies, from small businesses to large multinationals.”
The credit facility will be disbursed to eligible companies preferential rates in the form of “loans, import/export finance or the working capital facilities that they use for day-to-day business operations,” the lender said, without specifying whether it is open to companies around the world.
Headquartered in London, Standard Chartered Plc is a multinational banking and financial services company with a network of over 1,200 branches and outlets across more than 70 countries and employs around 87,000 people.
