L&F Air8 Supplier Finance

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Air8 Pte. Ltd. (“Air8” or “the Company”) (https://air8.io/), headquartered in Hong Kong, is a cross-border, supply chain trade finance platform connecting small-to-medium (SME) apparel and general merchandise (home and hard goods; footwear and accessories; and furniture) manufacturers (“manufacturer-clients” or “M-Cs”) based in the seven countries (Bangladesh, Cambodia, China, India, Indonesia, Sri Lanka, and Vietnam), with Europe, U.S., and globally based buyers. Air8 is majority owned by the leading Hong Kong-based supply chain management company Li & Fung Limited (https://www.lifung.com/) (“L&F” or “the Sponsor” a member of the Fung Group of Companies). Air8 is a provider of trade finance and does not trade, purchase, or store merchandise from M-Cs, nor does the Company own or operate warehouses, ports and terminals, truck fleets, and other similar physical assets.Li & Fung Limited is a global supply chain management company with offices in 41 locations worldwide. It manages high merchandise volume supply chains for brands and retailers worldwide on the buyer end and engages about 4,800 M-Cs worldwide on the supply side, of which about 850 contributed circa 80% of the value of merchandises shipped. The Sponsor classifies M-C products into broad merchandise sectors, and each sector further comprises sub-sectors. Apparel and textiles comprise a significant percentage (approximately 63%) of merchandise volume.“IFC is considering an A Loan of up to US$75 million to Air8 Pte Ltd (“Air8”), Li & Fung Limited (“L&F Limited”) and Li & Fung (Trading) Limited (“L&F Trading” and together with Air8 and L&F Limited, the “Borrowers”), to support the expansion of end-to-end supply chain financing of M-Cs (“the Project”). Using IFC loan proceeds, Air8 will extend short-term trade financing (with an average tenor of 3 months) to eligible M-Cs supporting their merchandise-related capital needs. Eligible M-Cs may include those evaluated and confirmed by the Sponsor to have met its E&S requirements continuously and those that have not yet gone through this process. At present, Air8 relies on Sponsor’s environmental, health, safety, and social policies and procedures, management systems, organizational structure, and capacities to conduct environmental and social (E&S) due diligence on potential M-Cs to determine whether to extend trade finance within the Air8 trade finance platform to such; and to monitor their E&S performance and compliance status.