Slaughter and May is advising Li & Fung and LFX on their partnership with IFC in supporting SME growth and digitalization in Asia’s supply chains
Slaughter and May, Hong Kong, advised Li & Fung and its affiliate LFX’s supply-chain fintech company, Air8, as borrowers in relation to a US$75 million senior credit facility granted by IFC. The facility has an environmental and social (E&S) focus to facilitate funding to be channelled to vendors and empower a more sustainable supply chain. The facility 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.
IFC’s investment aims to increase supply-chain finance opportunities for businesses, driving trade, employment, and economies in developing countries in Asia including Bangladesh, Cambodia, China, Indonesia, Sri Lanka, and Viet Nam.
Li & Fung, alongside Air8, is committed to mitigating the challenges associated with supply-chain financing. Through these efforts, they aim to advance the environmental, social, and governance agenda and enhance sustainability across the global supply chain.
Li & Fung, the Hong Kong-headquartered multinational group, is the world’s leading supply chain solutions partner. It specialises in responsibly managing supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide. Its aspiration is to deliver value in global supply chains by living our values around people, partners and planet.
LFX, building on Li & Fung’s foundation, invests in and operates innovative businesses to transform global value chains. By leveraging data insights, operational expertise, investment resources, and network access, LFX fosters growth, sustainability and collaboration among ecosystem partners to create value. Air8 is a supply-chain financing solution provider focused on sustainability under LFX. The company connects SME suppliers with funders across borders, leveraging deep apparel and merchandise sector expertise. Air8 promotes ESG asset creation, aligning funders’ capital with their ESG goals.
IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.