Citi Launches Solutions to Channel Client Deposits to Sustainable Finance and ESG Investments
Citi announced today the launch of Sustainable Time Deposit (TD) and Sustainable Minimum Maturity Time Deposits (MMTD, new deposit solutions aimed at enabling clients to invest excess cash in alignment with their sustainability goals.
The new deposit solutions, currently available in the U.K., Ireland, and Abu Dhabi, will allocate its funds to finance assets in a portfolio of green or social finance projects, aligned with criteria from Citi’s sustainable financing frameworks, while delivering competitive yields.
Czeslaw Piasek, EMEA Head of Liquidity Management Services, Treasury and Trade Solutions, Citi, said:
“Sustainability is no longer an executive level only discussion. Finance and treasury departments can play a strategic role in helping their firms to deliver on Environment, Social and Governance (ESG) -related goals and become more sustainable businesses.”
Funds from the new solutions will finance green projects, such as renewable energy, sustainable transportation and green buildings, and social projects expanding access to water, sanitation, digital connectivity, healthcare, education, affordable housing in emerging markets, as well as affordable housing projects in the U.S.
The new launch marks the latest in a series of solutions introduced by Citi aimed at supporting client sustainability goals and initiatives. In April, Citi announced that it will begin providing Sustainable Trade and Working Capital Loans (T&WC Loans) with favorable pricing if proceeds are used for sustainability-focused purposes, and the bank recently rolled out a sustainability-linked supply chain finance program. Citi has committed to significantly grow its sustainable finance activities, pledging to facilitate $1 trillion in sustainable finance by 2030.
David Tsui, EMEA Head of Deposits and Investments Products, Treasury and Trade Solutions, Citi, said:
“The expansion of our sustainable product suite is one of the steps we are taking to provide more comprehensive sustainable cash management solutions to clients. We are delighted to be partnering with treasurers to explore new and innovative ways to support their sustainability objectives.”