IFC Partners With Li & Fung and LFX to Support SME Growth and Digitalization in Asia's Supply Chains

To help increase access to affordable supply-chain finance for smaller enterprises in Asia and integrate greater digitalization in supply-chain management, IFC today announced a partnership with Li & Fung, a leading global supply-chain services provider in the apparel and general merchandise industry. IFC is providing a $75 million loan to Li & Fung and its affiliate LFX's supply-chain fintech company, Air8. This loan is a senior credit facility with an environmental and social (E&S) focus to facilitate funding to be channeled to vendors and empower a more sustainable supply chain. 

The loan will support Li & Fung's working capital needs and its supply-chain fintech affiliate Air8 in expanding its supply-chain solutions and financing services for apparel and general merchandise suppliers, particularly small and medium-sized enterprises (SMEs). IFC's support is expected to add many new suppliers to Li & Fung's network.