Cash News
Citi and the World Bank Group’s International Finance Corporation (IFC) announced today the creation of a new $2 billion emerging markets sustainable supply chain finance program, in addition to the launch of a $500 million facility in Mexico as the first project under program.
The new program forms part of IFC’s Global Supply Chain Finance Program (GSCF), as its largest project to date. Launched in 2022, the GSCF was established to bridge financing gaps in developing economies by providing supply chain finance (SCF) to emerging market suppliers engaged in transactions with domestic and international buyers. The program provides financing options and advisory services to advance financial access for SME suppliers, including underserved SMEs that encounter significant challenges in access to finance.
In addition to expanding financing options for suppliers, the program also works with partner financial institutions to promote green supply chain finance.
Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC, said:
“The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this program will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing.”
Citi announced a $1 trillion sustainable finance ambition in 2021, including goals to deploy $500 billion to environmental finance by 2030, and $500 billion for other Sustainable Development Goals (SDGs), including international development finance, community finance and economic inclusion, among others. According to the bank’s most recent ESG report, Citi reached $441 billion towards its goal at the end of 2023.
The new program follows the launch last year by IFC and Citi of a $300 million facility pilot under the GSCF to provide supply chain finance in emerging markets.
Murat Demirel, Head of Financial Resources and Risk Management, Trade and Working Capital Solutions at Citi, said:
“It is our great pleasure to strengthen our collaboration with IFC in the area of sustainable supply chain finance. Mexico is a great start to launch this joint initiative and Citi is looking forward to expanding this initiative into other emerging and frontier markets.”