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- IFC and Citi launch $2 billion sustainable supply chain finance program targeting emerging markets.
- First $500 million facility in Mexico to support SMEs and promote sustainability.
- Program aims to address supply chain finance gaps and expand access to green financing.
The International Finance Corporation (IFC) and Citi have unveiled a $2 billion program to bolster sustainable supply chain finance in emerging markets. The initiative, starting with a $500 million facility in Mexico, marks the largest project under IFC’s Global Supply Chain Finance Program (GSCF) since its inception in 2022.
This initiative aims to bridge the financing gaps faced by small and medium-sized enterprises (SMEs) in developing economies, providing essential supply chain finance (SCF) to suppliers engaged in transactions with both domestic and international buyers. The GSCF program offers financing options and advisory services, enhancing financial access for SMEs, including those traditionally underserved.
“We are pleased to partner with a market leader such as Citi on this groundbreaking program,” said Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC. “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’s ambitious goal, announced in 2021, includes deploying $1 trillion towards sustainable finance by 2030, with $500 billion earmarked for environmental finance and the remaining for Sustainable Development Goals (SDGs). By the end of 2023, Citi reported achieving $441 billion towards this target.
“It is our great pleasure to strengthen our collaboration with IFC in the area of sustainable supply chain finance,” said Murat Demirel, Head of Financial Resources and Risk Management, Trade and Working Capital Solutions at Citi. “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.“
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The program builds on IFC’s advisory work in Mexico, including the development of local credit infrastructure and the introduction of new financing products like e-invoice financing and reverse factoring. These efforts are part of a broader strategy to strengthen the legal foundation of supply chain finance markets and promote green supply chain finance through partner financial institutions.