UK bank Standard Chartered has acquired a stake in Chinese supply chain financing platform Linklogis, for an undisclosed amount.
The investment is expected to improve Standard Chartered’s joint supply chain ecosystem proposition and offer suppliers an access to affordable and convenient financing.
It is also the first time that the bank is investing in a supply chain financing platform in the country. The transaction also marks the first investment from a global bank for Linklogis.
Standard Chartered investing in Linklogis’ equity, follows its ongoing partnership with the firm, which began last February. The two organisations had signed a memorandum of understanding (MOU) in that month to jointly develop and deliver a supply chain financing proposition.
The investment also builds on the completion of several joint deep-tier supply chain financing transactions.
Linklogis’ platform will be used to provide large buyers with superior transparency on their entire chain of supplier and will offer small and medium-sized suppliers cheaper and privileged access to credit.
Standard Chartered Greater China & North Asia Regional CEO Benjamin Hung said: “Corporate clients globally are increasingly looking for efficient and secure digital platforms to meet their supply chain financing needs.
“Our strategic investment into Linklogis not only allows us to better serve our clients by being a part of their integrated ecosystem, it also reinforces our efforts to support China’s opening by facilitating the flow of capital, particularly for the Greater Bay Area.”
Standard Chartered will continue to use Linklogis’ technology and expertise to offer large corporate buyers enhanced visibility and transparency of their network of suppliers along with cheaper and easy access to financing for suppliers.
Standard Chartered and Linklogis aim to further extend the solution to support cross-border flows
Besides serving onshore customers, Standard Chartered and Linklogis further aim to explore new opportunities including extending the solutions to support cross-border flows.
Linklogis chairman and CEO Charles Song said: “We are much delighted with the deepening of partnership with Standard Chartered which shall invariably complement each other’s effort in the offering of supply chain financing solutions to the suppliers’ ecosystem.
“It has always been the strategic goal of Linklogis to develop innovative tech-enabled supply chain financing platform for the betterment of market efficiency and in support of real economy.”
