IFC and Citibank launch $2 billion trade finance facility to expand access for businesses in emerging markets

The International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, and Citibank, have announced a new trade finance facility designed to expand access to financing for corporate and small-to-medium enterprise (SME) businesses across emerging markets.

This partnership targets companies in sectors central to economic growth and job creation, operating in countries where scarce and costly access to trade finance limits their ability to import inputs, fulfil orders, and expand their workforce.

Mohamed Gouled, IFC Vice President, Products and Clients, said, “Access to trade finance is one of the most direct levers for strengthening supply chains and supporting economic growth across emerging markets.”

“By acting as a risk partner, IFC supports Citi in multiplying their reach to companies that drive job creation across emerging markets. This is also an effective structure we believe other global banks could adopt.”

Structure of the $2 billion facility

Under the partnership agreement, IFC will provide guarantees of up to $1 billion to Citi, with Citi committing an equivalent amount, creating a combined facility of up to $2 billion. Over the next three years, the facility is expected to support more than 100 companies across target markets. It will initially operate across multiple countries in Africa, Asia, and Latin America, with plans for further expansion.

IFC’s guarantees will free up balance sheet capacity for Citi, enabling the bank to deploy additional lending to businesses. Drawing on this freed-up capacity, Citi will deploy a minimum of $500 million of its own trade financing to companies operating in sectors with climate benefits, including water and sanitation infrastructure, renewable energy, energy-efficient manufacturing, and sustainable agriculture.

Stephanie von Friedeburg, Citi Global Head of Public Sector Banking, said, “Expanding access to trade finance in emerging markets is a strategic priority for Citi. IFC’s participation strengthens our capacity to support a broader range of businesses and the employment and economic activity that depends on them, in markets where access to financing remains a genuine constraint on growth.”

Addressing the global trade finance gap

The scale of the challenge is substantial. The global trade finance gap is estimated at $2.5 trillion, concentrated in developing economies where businesses face the steepest barriers to accessing affordable financing. This facility represents a direct intervention to reduce that gap and support critical economic activity.

Adoniro Cestari, Global Head of Trade and Working Capital Solutions at Citi, said, “Broadening risk-participation frameworks across emerging markets remains central to Citi’s trade finance strategy. As a first-of-its-kind initiative, this facility accelerates our sustainable lending commitments and delivers vital liquidity and working capital support to clients across developing nations.”

This announcement builds on a long-standing partnership between IFC and Citi. Since 2006, the two institutions have financed approximately $65 billion in emerging markets trade through IFC’s Global Trade Finance Program and Global Trade Liquidity Program, including $8.6 billion in IDA countries.