Citi, ABD ink deal to enhance supply chain financing for SMEs in Asia

It is expected to support over $100m of additional trade across APAC.

Citi has partnered with the Asian Development Bank (ADB) to enhance supply chain financing for small and medium-sized enterprises (SMEs).

The master risk participation agreement is expected to support more than $100m additional annual trade across Asia Pacific, enabling more SMEs across Asia to access Citi’s supply chain finance offering though ADB’s TSCFP, the ADB said in a statement published on its website.

The agreement was signed between ADB’s Trade and Supply Chain Finance Program (TSCFP) and Citibank North America.

Bhargave Dasgupta, ADB vice president for market solutions, noted the role of supply chain financing in boosting trade by providing essential capital to suppliers, and leveraging relationships with larger corporate partners.

“This partnership harnesses Citi’s expansive network and origination capabilities alongside ADB’s extensive presence in the Asia Pacific region’s developing countries, amplifying the developmental impact of trade and supply chain finance,” Dasgupta said.

This is not the first time that ABD and Citi have collaborated on trade finance. Since 2009, the two have facilitated over $6.2b worth of trade, expanding access to finance for SMEs, and building contributing to the regions resilience, the ADB said in a statement.

“ADB is a well-established partner for Citi in Asia and the Pacific, and we once again look forward to supporting its efforts in the region with this program,” said Citi global head of public sector Julie Monaco. "As one of the world's foremost global trade banks, we are proud to support SMEs in the region with their trade aspirations through the power of our global network.”