In a significant development aimed at enhancing supply chain financing, the Asian Development Bank (ADB) and Citi have entered into a master risk participation agreement. This collaboration is set to bolster access to finance for small and medium-sized enterprises (SMEs) and stimulate over $100 million in additional trade annually across Asia and the Pacific.

The agreement was formalised between ADB’s Trade and Supply Chain Finance Program (TSCFP) and Citibank North America. It is designed to allow more SMEs throughout developing Asia to leverage Citi’s robust supply chain finance offerings through ADB’s facilitative measures.

With this new master risk participation agreement, ADB and Citi are set to further their commitment to supporting significant growth in trade activities in Asia and the Pacific, aiming to exceed $100 million in additional trade flows each year.

ADB and Citi have maintained a strong collaborative relationship since 2009. Over the years, this partnership has facilitated trade transactions worth $6.2 billion.

“This partnership harnesses Citi’s expansive network and origination capabilities alongside ADB’s extensive presence in the Asia Pacific region’s developing countries, amplifying the developmental impact of trade and supply chain finance,” said ADB vice-president for market solutions Bhargav Dasgupta. “Supply chain financing plays a crucial role in boosting trade by providing essential capital to suppliers, leveraging relationships with larger corporate partners.”

“ADB is a well-established partner for Citi in Asia and the Pacific, and we once again look forward to supporting its efforts in the region with this programme,” said Citi global head of public sector Julie Monaco. "As one of the world's foremost global trade banks, we are proud to support SMEs in the region with their trade aspirations through the power of our global network.”  

Fibre2Fashion News Desk (DP)

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