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IFC and Citi to support sustainable finance in Mexico

Wednesday 7 August 2024 15:06 CET | News

International Finance Corporation (IFC) and Citi have agreed to implement a USD 500 million facility in Mexico as part of a USD 2 billion sustainable supply chain finance programme.

 

IFC and Citi have agreed to implement a USD 500 million facility in Mexico as part of a USD 2 billion sustainable supply chain finance programme.

This project is under IFC's Global Supply Chain Finance Programme (GSCF) and was launched in 2022 as part of IFC's response to global supply chain disruptions. The GSCF is designed to help address the supply chain finance gaps for SMEs and to expand access to sustainable supply chain finance.

Officials from IFC said they are happy to partner with a market leader such as Citi on this innovative programme. The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this programme will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing.

In a reply, representatives from Citi said they’re happy to strengthen their 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.

This facility builds on IFC's advisory work in Mexico related to the development of local credit infrastructure (including e-invoice financing) and the introduction of new reverse factoring and other asset-based financing products. IFC has been actively working with Mexican authorities and stakeholders to strengthen the legal foundation of supply chain finance markets and hopes this programme support the continued growth of the financing provided by Citi and other market participants.

What does IFC do?

IFC, a member of the World Bank Group, is one of the largest global development institutions focused on the private sector in emerging markets. They work in more than 100 countries, using their capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record USD 56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilising private capital to create a world free of poverty on a liveable planet.


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Keywords: supply chain finance, sustainability , banking, partnership, growth markets
Categories: Banking & Fintech
Companies: Citi, International Finance Corporation
Countries: Mexico
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Banking & Fintech

Citi

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International Finance Corporation

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