To support its clients in advancing their ESG (Environmental, Social, and Governance)priorities and manage their working capital needs, Citi has launched its first sustainability-linked supply chain finance (SSCF) program in the Asia Pacific. The SSCF program provides funding to a client’s suppliers from the date of collecting specific goods or providing services to the date on which payment is owed to these suppliers. The cost of this financing has to be borne by suppliers at a rate that would be lower than their usual cost of funds. Thus, the SSCF benefits the suppliers via cash flow acceleration, quicker payment, and improved financing costs.
