Citi, a global leader in trade and supply chain finance solutions has signed a risk-sharing deal with British International Investment (BII), UK’s development finance institution, as part of plans to increase its supply chain finance volumes in Africa.
The US$100mn master guarantee facility will see BII act as a guarantor for supply chain finance facilities provided by Citi to SME suppliers and underserved segments.
From the deal, Citi estimates to increase its annual Supply Chain Finance volumes in the continent by up to US$400mn as a result.
BII and Citi have agreed to set impact criteria to ensure that flexible capital is being directed toward underserved groups, women-owned businesses and enterprises targeted by the South African government’s Broad-based Black Economic Empowerment programme, which encourages businesses to integrate black people in the workplace, support black businesses, and give back to black communities affected by land repossession.
“We are delighted to come together with BII to support the growth of supplier financing in Sub-Saharan Africa,” says Chris Cox, global head of trade and working capital solutions, treasury and trade solutions, at Citi.
“This agreement will enable us to expand our supply chain finance offering and increase credit to suppliers most in need, in particular the SMEs that normally have limited access to financing.”
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