18:18 | 15/05/2018 Economy
The Asian Development Bank (ADB) through its Trade Finance Program (TFP) has signed an agreement with Citi to further support trade across Asia.
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With the agreement signed May 4, ADB and Citi intend to collaborate in financing up to US$100m or more in trade to support importers and exporters in developing markets. Under this new agreement, Citi and the ADB can share risk on a funded basis on underlying trade finance transactions.
Citi has already been working with the ADB since 2009 on its trade finance programme to support trade in developing Asia.
“This continuing partnership with Citi hopes to address the funded trade finance needs of SMEs, to stir more growth and jobs that underpin more stable economies in Asia,” said Steven Beck, Head of Trade and Supply Chain Finance at ADB. “We are pleased with the renewed agreement with Citibank to address the increasing trade finance gap.”
“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. “By introducing this new product and continuing our collaboration with ADB, we look forward to furthering our mission of enabling growth and economic progress.”
Backed by ADB's AAA credit rating, TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. Since 2009, ADB’s TFP has supported more than 12,000 small and medium-sized businesses across developing Asia—through over 16,600 transactions valued at over $30 billion—in sectors ranging from commodities and capital goods, to medical supplies and consumer goods. In 2017, TFP supported approximately $4.5 billion in trade through 3,505 transactions.