Standard Chartered on Monday said it will set aside $1 billion to finance companies that are providing goods and services to tackle the Covid-19 outbreak.
The lender plans to offer financing at preferential rates to firms that are manufacturers and distributors in the pharmaceutical industry, healthcare providers, as well as manufacturers of items such as ventilators, face masks, protective equipment, and sanitizers.
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. At the same time, we want to make sure that existing manufacturers and service providers get the support they need, said Simon Cooper, CEO of StanChart’s corporate and institutional banking division in a media statement.
Financing will come in the form of loans, import finance, export finance, or working capital facilities to help these firms tool up and get their products to market. The bank, which derives about two-thirds of its total operating income from Asia, is also trying to identify companies that may switch into, or add, anti-virus products to their output but have not indicated that they will do so.
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, Cooper added.