Citi announced that it will begin providing Sustainable Trade and Working Capital Loans (T&WC Loans) to its clients, offering favorable pricing for loans used to finance international trade finance and day-to-day activities, if proceeds are used for sustainability-focused purposes.

The Sustainable T&WC Loans solution will launch in 80 countries across the Asia Pacific, Europe, Middle East and Africa, and Latin America regions, with plans to roll out the program further across North America throughout 2022.

Kanika Thakur, Asia Pacific Trade Head, Treasury and Trade Solutions, Citi, said:

“Having leading ESG practices is core to Citi’s mission of enabling growth and progress. It is embedded in how we do business and the value we deliver to clients. As our clients also place ESG front and center of their corporate agendas, we are working with them hand-in-hand to support the transition to sustainable and low-carbon business models. The Sustainable T&WC Loans add to Citi’s growing suite of ESG-linked trade financing products and services and we remain committed to introducing new and innovative solutions for our clients in this area.”

According to Citi, the launch marks the next step in its expansion of sustainable finance solutions, following the recent rollout of the bank’s 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, including the deployment of $500 billion to environmental finance. Citi has also committed to a 2050 net zero greenhouse gas (GHG) financing target.

Citi provides T&WC loans to its corporate, commodity, financial institution and commercial banking clients, helping them to manage working capital needs and international trade finance activities. Under the new solution, Citi will provide clients with a framework for incentivized pricing if the loans are used for environmental or social purposes, subject to certain sustainability criteria.

Davida Heller, Head of Sustainability Strategy, Citi, said:

“Companies around the world are increasingly looking at how to incorporate sustainable practices across their businesses. At Citi, we are supporting our clients at every step of their journey with our products and services, and this extended working capital loan offering represents yet another tool in our toolbox to help our clients achieve their sustainability goals.”