The latest news highlights a risk-sharing lending arrangement between Citi and BII (British International Investment) worth $100 million, focused on boosting supply chain financing volume in Africa by up to four times as a result.
Through this US$100mn funding support provided by BII, Citi is looking forward to improving its supply chain lending in the continent for Small and Medium Enterprises (SMEs) that often struggle to access trade finance services or other funding facilities. In the aforesaid deal, BII will deliver its guarantor services for the lending services given by Citi to small importer-exporters and underserved industries. It means that both the parties will bear 50/50 risk - BII would cover half the losses in a situation where a small business fails to pay the loan granted by Citi.
“The recent Master Guarantee risk-sharing deal will enable Citi’s supply chain financing structure to grow & enhance in Africa by up to $400 million” BII stated.
Read more: https://www.emeriobanque.com/news/citi-strives-to-boost-africa-supply-chain-finance-bii-support
