Washington September 13 2023: The International Finance Corporation (IFC) and Citi have agreed to launch a $300 million facility pilot under IFC’s newly established Global Supply Chain Finance Program (GSCF).
The pilot will help provide needed supply chain finance to suppliers and buyers in emerging markets, thus helping to ease constraints and boost market resilience amid global economic uncertainty.
Higher working capital costs and deteriorating access to unsecured financing has exacerbated the already steep demand for supply chain finance. The collaboration with Citi marks the first pilot under GSCF, building on previous successful finance programs, and is an important milestone for future IFC-Citi initiatives focused on supply chain finance.
GSCF is part of IFC’s response to supply chain disruptions globally and is expected to have broad reach, providing innovative and affordable financing options that benefit both large and small suppliers, as well as international and domestic buyers. Additionally, the program will focus on helping to solve the supply chain finance gaps for SMEs and women-owned suppliers and expand access to sustainable supply chain finance.
“The supply chain finance gap is a significant challenge for businesses and communities around the world, especially for SMEs, as it limits economic growth and reduces opportunities for job creation and poverty reduction,” said Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC. “IFC is very pleased to partner with Citi – a global leader in supply chain finance. Citi’s vast network and commitment to sustainability further enables IFC to achieve our development objectives at scale, and we look forward to future collaboration under GSCF.”
“Citi is pleased to partner with IFC on this innovative solution for supply chain financings.” said Chris Cox, Citi’s Global Head of Trade and Working Capital Solutions at Citi Treasury and Trade Solutions. “Citi and IFC share a joint goal of this pilot being a precursor to a framework facility which will support supply chain financings in emerging markets. By leveraging Citi’s unique global network, and IFC’s emerging market expertise, we are looking to support our clients to help them grow their supply chains in emerging markets all over the world.”
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 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
