The two lenders can share risk on a funded basis.
Citi has signed an agreement with Manila-based Asian Development Bank to share risk on a funded basis for the trade finance transactions it will support.
The two lenders will cooperate to lend assistance to importers and developers in developing markets by co-financing $100m or more in trade through ADB’s Trade Finance Programme.
TFP provides guarantees and loans to partner banks in an effort to support trade, import and export ambitions of companies.
“As one of the world’s leading global trade banks, Citi is pleased to support this initiative to help fund trade flows with multinationals as well as SMEs in and out of developing markets,” said John Ahearn, global trade head, Citi Treasury and Trade Solutions.
Also read: Citi inks deal with BOC and CMB to explore co-financing Belt & Road projects
“By introducing this new product and continuing our collaboration with ADB, we look forward to furthering our mission of enabling growth and economic progress,” he added.
TFP has supported approximately $4.5b in trade through 3,505 transactions.
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