COVID vaccine roll-out in Asia-Pacific’s developing economies: HSBC and ADB in US$300M boost
HSBC and the Asian Development Bank (ADB) today announced a US$ 300 million financing programme to help the region’s supply chains scale-up to deliver life-saving vaccines at both volume and pace.
The targeted financing will inject much-needed liquidity into the complex vaccine ecosystem – from sourcing and manufacturing through to distribution. It will support the ecosystem’s long-term reconfiguration to deliver mass COVID -19 inoculation programmes durably while ensuring other therapeutic areas are not left wanting.
The public-private partnership extends an innovative risk-sharing agreement between HSBC and ADB, launched in July 2020, to support PPE suppliers. By leveraging the ADB’s sovereign rating, the programme enables greater private sector participation than would otherwise be possible leading to higher levels of liquidity. This is critical for developing economies for which trade finance shortages can represent a significant barrier to trade and consequently the fight against the pandemic.
While the arrival of vaccines is a game changer, they are in short supply with the majority reserved by developed economies. A recent ICC Research Foundation study found that the global economy stands to lose up to $ 9.2 trillion if Governments fail to ensure developing economy access to COVID-19 vaccines. However, HSBC Research shows inoculation progress in Asian economies differs markedly with some in the region still at the start line due to limited supply of vaccines.