Citi has launched sustainable trade and dealing capital loans in Europe, the Middle East and Africa (EMEA), Latin America (LATAM), and Asia Pacific (APAC) regions, the banking giant said inside a news release Tuesday (April 5).
Citi says the merchandise will initially launch in 80 countries during these regions and will also be further presented across North America all year round.
\”The launch follows the successful rollout of Citi's Sustainable Supply Chain Finance offering, and represents the next step of the journey to expand Citi's sustainable Trade and dealing Capital Solutions as a major factor of Citi's broader commitment to advancing its Environmental, Social and Governance (ESG) agenda,\” the organization said.
These new loans help Citi's corporate, commodity, financial institution, and commercial banking clients manage their working capital needs by funding their international trade finance and day-to-day commercial activities.
In addition, the trade and dealing capital loans can help clients reach their sustainability goals in instances where the proceeds from the loans can be used for social or environmental reasons.
\”Under Citi's Trade and Working Capital business, we are closely dealing with our clients to aid their supply chains and ecosystem transition to a sustainable, low-carbon business model that balances the environmental, social and economic needs of society,\” said Peadar Mac Canna, who heads Citi'sEMEA Trade and Working Capital business. \”Combined with this digital solutions, Citi's Sustainable T&WC Loans allow clients to make use of loan proceeds for, or in reference to, ESG purposes.\”
The bank says the new loans are in keeping with Citi's commitment to greater sustainability. In 2022, the organization rolled out its \”five-year $250 Billion Environmental Finance Goal,\” designed, as Citi puts it, \”to advance methods to address climate change around the world in addition to priorities centered on climate risk and sustainable operations.\”
Citi has additionally committed $1 trillion to sustainable finance by 2030, which includes US$500 billion for environmental finance and US$500 billion for social finance.
\”Companies all over the world are increasingly looking at how to incorporate sustainable practices across their businesses,\” Citi Head of Sustainability Strategy Davida Heller said in the release. \”At Citi, we're supporting our clients at every step of the journey with our products and services, which extended working capital loan offering represents yet another tool within our toolbox to assist our clients achieve their sustainability goals.\”
