40688 - GTLP Citi IV

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Summary of Investment Information

Project Number

40688

Company Name

CITIBANK N.A.

Date SPI Disclosed

Apr 26, 2018

Country

World Region

Region

Global

Projected Board Date

May 30, 2018

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Jul 7, 2018

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : May 31, 2018
Signed : May 31, 2018
Invested : Jul 2, 2018

Sector

Commercial Banking - Trade and Supply Chain

Project Description

The proposed project, GTLP Citi IV, falls under the Global Trade Liquidity Program (“GTLP”), an innovative and well-received trade finance program launched by the International Finance Corporation (“IFC”) in 2009. The GTLP provides liquidity or guarantees thereby helping banks to more fully utilize their credit limits, manage risk and support trade in the emerging markets. Since its launch, the GTLP Program has supported more than US$54.4 billion in trade (one third of which in IDA countries). The GTLP Citi IV project is a renewal of the existing GTLP Citi III transaction. GTLP Citi IV involves establishing a funded risk sharing facility with Citibank, N.A. (“Citi” or the “Bank”) for up to US$1.2 billion, with an IFC investment of up to US$600 million in a portfolio of trade finance assets (the “Project”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	600.0
Equity

Development Impact

Direct and Indirect Support of Trade. The Project will help enable Citi to deliver trade finance to emerging market issuing banks. This is expected to in turn increase access to finance for emerging market importers and exporters along the value chain, thus supporting growth, employment, and the generation of income. Cross-border Finance Links Support. IFC is partnering with a bank that has a long track record of developing financial infrastructure, processes, networks and trade finance channels, and the experience to engage in the trade finance space successfully. By continuing to support the cross-border finance links that are essential to emerging market financial systems, the Project will help to increase trade finance through established channels that have been developed over time.

IFC's additionality is largely derived from GTLP's role as an innovative structure to help inject liquidity into the trade finance market. Furthermore, in addition to promoting Citi's own funding, IFC will also mobilize resources from its program partners. Therefore, through the proposed risk sharing participation in underlying trade transactions, IFC and its program partners will help enable Citi to increase the availability of trade credit and potentially address certain market gaps in trade finance.

E&S Category Rationale / Risks and Mitigation

This Project has been classified as a category FI-3 project according to the IFC’s Environmental and Social Sustainability Policy. The applicable requirements for the Project include the IFC’s Exclusion List and other eligibility criteria established by IFC. Each trade pool will be supported by underlying documentation with the designated bank, and the agreement with Citi will specify that the underlying traded goods meet the above applicable requirements and will require Citi to report on implementation. IFC will also review the details of the underlying trade transactions to confirm their compliance with IFC Exclusion List and other requirements.

Contacts

For Inquiries About the Project, Contact

Citibank, N.A.
Barbara Kobelt
Vice President
+1 212 816 1063
Barbara.kobelt@citi.com
388 Greenwich Street, 25th Floor, New York, NY 10013
www.citi.com

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