IFC and Citi Launch $500M Facility in Mexico to Boost Sustainable Supply Chain Finance

The new facility builds on IFC’s advisory efforts in Mexico, which include developing local credit infrastructure such as e-invoice financing and introducing innovative financing products like reverse factoring.

The International Finance Corporation (IFC) and Citi have unveiled a major $500 million facility in Mexico, marking the inaugural project under their $2 billion sustainable supply chain finance program. This initiative is the largest to date under IFC's Global Supply Chain Finance Program (GSCF), which was established in 2022 to address global supply chain disruptions and enhance access to sustainable finance for small and medium-sized enterprises (SMEs) in emerging markets.

Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC, expressed enthusiasm about the collaboration, stating, "Partnering with a leading institution like Citi on this groundbreaking program is a significant step forward. This initiative will help provide essential trade and supply chain finance to suppliers in Mexico, including those who may not traditionally be seen as bankable."

Murat Demirel, Head of Financial Resources and Risk Management, Trade and Working Capital Solutions at Citi, highlighted the importance of the project, saying, "We are excited to expand our collaboration with IFC in sustainable supply chain finance. Launching this initiative in Mexico is an excellent start, and we look forward to extending it to other emerging and frontier markets."

The new facility builds on IFC's advisory efforts in Mexico, which include developing local credit infrastructure such as e-invoice financing and introducing innovative financing products like reverse factoring. This program aims to strengthen the legal framework of supply chain finance markets in Mexico and support the broader growth of financing options provided by Citi and other market participants.