In a major advancement geared towards strengthening supply chain financing, the Asian Development Bank (ADB) and Citi have forged a pivotal master risk participation agreement. This strategic alliance is poised to amplify financing accessibility for small and medium-sized enterprises (SMEs) while igniting a surge of over $100 million in additional trade each year throughout Asia and the Pacific region.
Formalized between the Asian Development Bank's Trade and Supply Chain Finance Program (TSCFP) and Citibank North America, the agreement aims to extend Citi's formidable supply chain finance solutions to a greater number of small and medium-sized enterprises (SMEs) across developing Asia. This strategic partnership leverages ADB's facilitative initiatives to enhance accessibility for SMEs to Citi's robust financing options within the supply chain domain.
Through the newly established master risk participation agreement, ADB and Citi are reinforcing their dedication to fostering substantial growth in trade endeavors across Asia and the Pacific, with a targeted aim to surpass $100 million in additional trade flows annually. Building upon their robust collaborative history dating back to 2009, ADB and Citi have maintained a steadfast partnership. Over the years, this alliance has facilitated trade transactions totaling $6.2 billion, underscoring their ongoing commitment to bolstering regional trade dynamics.
“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 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's 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”.