Citi Launches its First Sustainability-Linked Supply Chain Finance Program in MENA Region
Citi announced the implementation of a new sustainability-linked supply chain finance program for chemical and consumer goods company, Henkel. Initially launched for the company’s suppliers in Algeria, the initiative marks Citi’s first Middle East and North Africa (MENA) SSCF program, as the bank looks to expand its sustainable finance activities.
Marcel Hanen, Citi Regional Head of the Global Subsidiaries Group – Middle East, North Africa, Pakistan and Turkey, said:
“We are excited to be partnering with Henkel and helping them to achieve their sustainability goals via the launch of the first Sustainable Supply Chain Financing Program for Citi in the MENAPT region. Like Henkel, our ESG commitments are an essential part of our firm’s strategy and we are committed to provide innovative ESG-linked solutions to our clients and to expand the use of our Sustainable Supply Chain Financing Program in the region.”
Supply chain finance programs provide financing to companies’ suppliers when products are delivered or services provided until the date on which payment is owed, accelerating cash flow and financing costs for the suppliers. Under the new program, Henkel’s suppliers who demonstrate strong or improving sustainability performance can access Citi’s supply chain financing at preferential rates, with rates improving along with sustainability scores.
Bülent Pehlivan, Regional Head of Finance – India, Middle East and Africa said:
“With sustainability being at the core of our company’s strategy, we are engaging in a range of activities with new ways of growing and innovative solutions to create value. We are delighted to collaborate with Citi Group to introduce a sustainable supply chain financing program for the first time in the region. Launching first in Algeria, we are committed to continue to implement it in other countries of the region in the near future.”
The program launch follows a series of commitments by Citi to significantly grow its sustainable finance activities, including pledges made last year to facilitate $1 trillion in sustainable finance by 2030, including the deployment of $500 billion to environmental finance. Citi has also committed to a 2050 net zero greenhouse gas (GHG) financing target.
Dave Aldred. MENA Head, Treasury and Trade Solutions, Citi, said:
“We are proud to be collaborating with Henkel in this first SSCF program in the MENA region. It is really pleasing to see that Henkel and Citi share a strategic focus on ESG. At Citi we are looking forward to this partnership and journey with Henkel which will ensure that we continue to adapt and develop our ESG solutions even further.”