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The Asian Development Bank (ADB) and Citi have entered into a master risk participation agreement to boost access to supply chain financing for small and medium-sized enterprises (SMEs), aiming to support over $100 million in additional annual trade across Asia and the Pacific.

The agreement, involving ADB’s Trade and Supply Chain Finance Programme (TSCFP) and Citibank North America, seeks to enable more SMEs in developing Asia to utilise Citi’s supply chain finance solutions through the ADB’s TSCFP.

“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.”

Since 2009, ADB and Citi have worked together on trade finance initiatives, facilitating $6.2 billion worth of trade, enhancing access to finance for SMEs, and contributing to regional resilience. The new master risk participation agreement is set to support over $100 million in additional trade in Asia and the Pacific each year.

“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.”

With the support of ADB’s AAA credit rating, the TSCFP provides loans and guarantees to over 200 partner banks to bolster trade, facilitating imports and exports that drive growth. Since its inception in 2009, TSCFP has supported $57 billion in trade, covering more than 45,000 transactions in emerging markets.