OPIC and Citi to Leverage up to $200 Million in Financing to Connect Micro and Small Enterprises with Corporate and Financial Institutions
September 25, 2013
(OPIC)
Support will aid financial institutions and large corporations to include
micro and small enterprises as business and supply chain clients
Initiative will help Citi clients unlock economic potential and extend
corporate value chains in developing markets
New York – The Overseas Private Investment Corporation (OPIC) and Citi have
agreed to use their existing framework lending facilities to deliver up to $200
million in financing for Citi’s multinational and local corporate and financial
institution clients that are engaged in sectors such as microenterprise,
agribusiness, affordable housing, clean energy, education and sanitation.
As financial institutions and other large corporations increasingly recognize
micro and small enterprises as potential partners and clients, the OPIC/Citi
financing will be used to fund transactions with micro and small corporate
suppliers, self-employed individuals and smallholder farmers in rural areas in
Africa, the Middle East, Asia, Eastern Europe, and Latin America.
According to the World Bank’s Consultative Group to Assist the Poor (CGAP),
microfinance institutions increasingly view small enterprises as critical
components of their own business growth plans, recognizing the bottom-line value
in supporting established micro clients over time.[1] In responding to similar
feedback and demand from Citi’s large corporate and financial institution
clients that are looking for ways to deepen their relationships with micro and
small enterprises, financing through the OPIC/Citi initiative will not only
enable Citi’s clients to connect with smaller suppliers and clients, it will
also expand opportunities for inclusion by connecting micro and small
enterprises with the mainstream financial system.
This new collaboration builds on the success of an existing $350 million
partnership between Citi and OPIC, which is providing micro lending services to
borrowers in emerging markets worldwide. To date, that program has funded 38
microfinance institutions in 21 countries, which in turn have provided small
loans to more than 960,000 borrowers – 91 percent of whom are women. The
program was awarded the 2012 International Award for Excellence category by the
U.K.-based Business in the Community.
“OPIC is excited to work with Citi to expand access to finance in the developing
world to reach into the communities that need it most,” said OPIC President and
CEO Elizabeth Littlefield. “Microfinance and small business lending is critical
to local farmers and small enterprises - which often serve as critical points in
a supply chain - and to the to the economic health and overall well being of
their communities. The OPIC-Citi partnership has proven to be a highly effective
tool for investing in emerging markets in a way that yields positive social and
economic benefits.”
“Citi is pleased to once again collaborate with OPIC to broaden financial
inclusion through an innovative partnership that will leverage the capabilities
and business objectives of many of Citi’s clients to help unlock the economic
potential of underserved communities in developing markets,” said Bob Annibale,
Citi’s Global Head of Microfinance and Community Development. “Like Citi, many
of our clients recognize the opportunity associated with reaching new markets,
suppliers and customers, and, with OPIC’s support, we continue to develop
creative solutions to link them together.”
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