Dubai: Etihad Airways has appointed National Bank of Abu Dhabi (NBAD) to establish an innovative and fully automated Supply Chain Finance (SCF) programme, which will allow the airline to extend a range of benefits to its strategic suppliers, while strengthening its supply chain.
NBAD is the first bank in the UAE to provide an SCF platform based in the region.
Supply Chain Finance is a set of solutions that optimises cash flow by allowing companies to extend payment terms to their suppliers while enabling suppliers — generally SMEs — to get paid earlier. This creates a win-win situation for both the buying company and its suppliers.
James Rigney, Group Chief Financial Officer of Etihad Aviation Group, said in a statement that Etihad Airways has always been at the front line of driving efficiencies and creating an empowering environment for stakeholders.
“We are extremely happy to be the first users of NBAD’s Supply Chain Finance programme. As the airline continues to innovate and grow, this solution will help us support and drive liquidity throughout our supply chain,” he said.
Value-added product
Mark Yassin, NBAD’s Head of Global Banking, said that this is a sophisticated value-added product, that shows that NBAD is on the forefront of innovation in the region and able to bring global standard products to the market. SCF is well-established globally but still new in the Mena region.
“We have invested heavily in technology to meet the required international level of sophistication and are very proud today to be able to help Etihad Airways, as well as other clients in the future, manage their working capital more efficiently and safely,” he said.
