International Finance Corporation (IFC) and Citi have signed an agreement to implement a $500 million facility in Mexico. This is the first project under the umbrella of a $2 billion sustainable supply chain finance program focused on emerging markets.
The project is the largest to date to be funded by IFC’s Global Supply Chain Finance Program (GSCF), which was launched in 2022 to respond to global supply chain disruptions. The GSCF is designed to help address the supply chain finance gaps for SMEs and expand access to sustainable supply chain finance.
Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC, said: “We are pleased to partner with a market leader such as Citi on this groundbreaking program. The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this program will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing.”
Murat Demirel, Head of Financial Resources and Risk Management, Trade and Working Capital Solutions at Citi, said: “It is our great pleasure to strengthen our collaboration with IFC in the area of sustainable supply chain finance. Mexico is a great start to launch this joint initiative, and Citi is looking forward to expanding this initiative into other emerging and frontier markets.”
This facility builds on IFC’s advisory work in Mexico related to the development of local credit infrastructure–including e-invoice financing–and the introduction of new reverse factoring and other asset-based financing products.
IFC has been actively working with Mexican authorities and stakeholders to strengthen the legal foundation of supply chain finance markets. It hopes this program will support the continued growth of the financing provided by Citi and other market participants.
