CITI PARTNERS WITH EX-IM BANK TO LAUNCH SUPPLIER FINANCE PROGRAM SUPPORTING SMALL AND MID-SIZED BUSINESSES
New York - September 15, 2010 – Citi's Global Transaction Services today announced that it has partnered with the Export-Import Bank of the United States (Ex-Im Bank) to launch an expansion of Citi's pioneering Supplier Finance program through Citi's participation in Ex-Im Bank's Supply-Chain Finance Guarantee Program. This program supports small and medium-sized companies supplying products and services to exporters in the United States through increased access to capital.
The Ex-Im Bank Supply-Chain Finance Guarantee Program facilitates supplier lending and is designed to be a reliable source of cost-effective liquidity to the U.S. export supply chain. The program is available to U.S. exporters (manufacturers with foreign sales) that procure goods and services from U.S. suppliers. The structure allows the suppliers to receive early payment of their receivables at a discounted rate, helping to optimize their working capital.
Citi and other lenders supported Ex-Im Bank in the structuring of this program. Citi's initial participation will support up to $1 billion and will increase as activity expands.
"Citi is pleased to be working with Ex-Im Bank on this groundbreaking initiative. This program reinforces our commitment to the U.S. economy by providing credit-challenged sectors with the financing required to grow and create jobs. Much like the Auto Supplier Financing Program Citi financed last year, this will help to jumpstart the trade supply chain for more U.S. exporters, while supporting the ongoing growth of the small and mid-sized U.S. supplier base," said Vikram Pandit, Chief Executive Officer of Citigroup.
"Ex-Im Bank is working with partners, including Citi, to expand export credit for U.S. small and mid-sized companies. Our Supply-Chain Finance Guarantee Program is an innovative way through which we are providing better access to credit. In doing so, we strengthen the export supply chain to create and maintain jobs in the United States," said Ex-Im Bank Chairman and President Fred P. Hochberg.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
About Global Transaction Services
Global Transaction Services, a division of Citi's Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citi's Global Transaction Services supports over 65,000 clients.