ADB, Citi Sign Agreement to Support SMEs and Boost Trade Through Supply Chain Financing
MANILA, PHILIPPINES (6 May 2024) — The Asian Development Bank (ADB) and Citi have partnered to sign a master risk participation agreement to enhance access to supply chain financing for small and medium-sized enterprises (SMEs) and support more than $100 million in additional annual trade across Asia and the Pacific.
The agreement was signed between ADB’s Trade and Supply Chain Finance Program (TSCFP) and Citibank North America. Enabling more SMEs across developing Asia to access Citi’s supply chain finance offering though ADB’s TSCFP
“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,” said ADB Vice-President for Market Solutions Bhargav Dasgupta. “Supply chain financing plays a crucial role in boosting trade by providing essential capital to suppliers, leveraging relationships with larger corporate partners.”
ADB and Citi have been collaborating on trade finance since 2009, facilitating $6.2 billion worth of trade, expanding access to finance for SMEs, and building contributing to the regions resilience. The master risk participation agreement is expected to support more than $100 million in additional trade in Asia and the Pacific each year.
“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.”
Backed by ADB’s AAA credit rating, TSCFP provides loans and guarantees to more than 200 partner banks to support trade, boosting imports and exports that foster growth. Since 2009, TSCFP has supported $57 billion in trade in more than 45,000 transactions in emerging markets.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
