MICROCAPITAL BRIEF: Asian Development Bank, Citigroup to Facilitate Up to $100m in Local Currency Loans for MFIs in Asia

The Asian Development Bank (ADB), a 67-member development finance institution headquartered in the Philippines, and Citigroup, a financial services corporation based in the US city of New York, recently announced the intention to facilitate up to USD 100 million in local-currency loans for microfinance institutions (MFIs) in Asia under the Microfinance Risk Participation and Guarantee Program. The program, through which ADB shares risk with commercial banks to encourage local-currency lending, targets MFIs whose products and services benefit end-users in “rural and remote” areas of Asia and the Pacific.

Since the program’s inception in 2012, ADB and its partners have facilitated the equivalent of approximately USD 370 million in loans to 20 MFIs in Bangladesh, India and Indonesia, benefitting 2.1 million end-borrowers. ADB has raised approximately USD 200 million in private-sector co-financing for the program.

As of 2015, ADB reported total assets of USD 117 billion. As of 2015, Citigroup reported 200 million customers and 231,000 employees in 160 countries. As of the same year, it reports total assets of USD 1.7 trillion and total deposits of USD 908 billion.

By Michelle Dold, Research Associate

About The Asian Development Bank (ADB)

Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a development finance institution that consists of 67 country members. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees in member countries in the region. As of 2015, ADB reported total assets of USD 117 billion.

About Citigroup

Citigroup is a financial services corporation with its headquarters in the US city of New York. Citigroup offers services including consumer and commercial banking, brokerage, asset management and institutional securities and transactions services. Citigroup’s philanthropic activities, including its financial inclusion initiative, are carried out by the Citi Foundation. From 2005 to 2016, Citigroup has provided approximately USD 40 million in credit to microfinance institutions in 50 countries. As of 2015, Citigroup reported 200 million customers and 231,000 employees in 160 countries. As of the same year, it reports total assets of USD 1.7 trillion.

Sources and Additional Information:

[1] ADB Brief: “ADB and Citi Partner to Provide $100 Million for Microfinance in Asia”

[2] MicroCapital Universe Profile: The Asian Development Bank (ADB)

[3] MicroCapital Universe Profile: Citigroup

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