Sustainable Finance

Citigroup Announces the Launch of Sustainable Trade and Working Capital Loans Solution

Published on: 12 April 2022 10:51 AM
by KnowESG
London MMB »1H2 Citigroup Centre

Citigroup, the global investment banking company, launched its Sustainable Trade and Working Capital Loans (T&WC Loans) solution in Europe, Latin America, Asia Pacific, the Middle East and Africa. The proceeds will support clients with their sustainability goals and provide them with a framework for incentivised pricing.

The launch comes following the rollout of Citi's Sustainable Supply Chain Finance offering and the next step toward expanding its sustainable Trade and Working Capital Solutions and advancing its environmental, social and governance (ESG) agenda.

The company's corporate, commodity, financial institution and commercial banking clients get T&WC Loans assistance to manage their working capital needs. The solution will facilitate clients' international trade finance activities and commercial activities. It also helps enhance their liquidity.

The T&WC loans solution will support clients with their environmental and social goals and provide them with a framework for incentivised pricing.

Kanika Thakur, Asia Pacific Trade Head, Treasury and Trade Solutions, Citi, said: "Having leading ESG practices is core to Citi's mission of enabling growth and progress. It is embedded in how we do business and the value we deliver to clients. As our clients also place ESG front and centre of their corporate agendas, we are working with them hand-in-hand to support the transition to sustainable and low-carbon business models. The Sustainable T&WC Loans add to Citi's growing suite of ESG-linked trade financing products and services, and we remain committed to introducing new and innovative solutions for our clients in this area."

Citi's Sustainable T&WC Loans solution reflects its commitment to incorporating sustainability into its products, services, and customer offers. Citi unveiled its revised Sustainable Progress Strategy in July 2020 to help accelerate the transition to a global low-carbon economy and also pledged US$1 trillion to sustainable finance by 2030, including US$500 billion for environmental finance and US$500 billion for social finance.

Davida Heller, Head of Sustainability Strategy, Citi, said: "Companies around the world are increasingly looking at how to incorporate sustainable practices across their businesses. At Citi, we are supporting our clients at every step of their journey with our products and services, and this extended working capital loan offering represents yet another tool in our toolbox to help our clients achieve their sustainability goals.”

At first, the solution will roll out in 80 countries in Europe, Latin America, Asia Pacific and the Middle East and Africa and then across North America later in 2022.