Citi has launched sustainable trade and working capital loans in Europe, the Middle East and Africa (EMEA), Latin America (LATAM), and Asia Pacific (APAC) regions, the banking giant said in a news release Tuesday (April 5).
Citi says the product will initially launch in 80 countries in these regions and will be further rolled out across North America throughout the year.
“The launch follows the successful rollout of Citi’s Sustainable Supply Chain Finance offering, and represents the next step of the journey to expand Citi’s sustainable Trade and Working Capital Solutions as a key part of Citi’s broader commitment to advancing its Environmental, Social and Governance (ESG) agenda,” the company said.
These new loans help Citi’s corporate, commodity, financial institution, and commercial banking clients manage their working capital needs by funding their international trade finance and day-to-day commercial activities.
In addition, the trade and working capital loans can help clients reach their sustainability goals in cases where the proceeds of the loans are used for social or environmental reasons.
“Under Citi’s Trade and Working Capital business, we are closely working with our clients to support their supply chains and ecosystem transition to a sustainable, low-carbon business model that balances the environmental, social and economic needs of society,” said Peadar Mac Canna, who heads Citi’sEMEA Trade and Working Capital business. “Combined with our digital solutions, Citi’s Sustainable T&WC Loans allow clients to use loan proceeds for, or in connection with, ESG purposes.”
Read more: Citi Unveils ‘Green Deposits’ For Environmentally Conscious Customers
The bank says the new loans are in keeping with Citi’s commitment to greater sustainability. In 2020, the company rolled out its “five-year $250 Billion Environmental Finance Goal,” designed, as Citi puts it, “to advance solutions to address climate change around the world in addition to priorities focused on climate risk and sustainable operations.”
Citi has also committed $1 trillion to sustainable finance by 2030, which includes US$500 billion for environmental finance and US$500 billion for social finance.
“Companies around the world are increasingly looking at how to incorporate sustainable practices across their businesses,” Citi Head of Sustainability Strategy Davida Heller said in the release. “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.”
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