Washington, D.C., August 5, 2024 –International Finance Corporation (IFC) and Citi have agreed to implement a $500 million facility in Mexico as the first project under the umbrella of a $2 billion sustainable supply chain finance program focused on emerging markets that was signed today by the two institutions.
This is the largest project to date under IFC's Global Supply Chain Finance Program (GSCF), which 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.
"We are pleased to partner with a market leader such as Citi on this groundbreaking program," said Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC. "The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this program will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing."
"It is our great pleasure to strengthen our collaboration with IFC in the area of sustainable supply chain finance," said Murat Demirel, Head of Financial Resources and Risk Management, Trade and Working Capital Solutions, Citi. "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 program support the continued growth of the financing provided by Citi and other market participants.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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