Investment bank and financial services corporation, Citigroup’s India unit is planning to offer sustainability-linked deposits in a few months to its corporate and institutional clients, making it the first-of-its-kind product offering in the country, according to a report by Bloomberg.
The company had unveiled Sustainability-linked deposit solutions for corporate & institutional clients in Asia Pacific last year in August.
Delivering competitive yields, funds invested into the Sustainable Time Deposit will be allocated to finance or refinance assets in a portfolio of eligible green and social finance projects, based on criteria set in the Citi Green Bond Framework, Social Finance Framework and Social Bond for Affordable Housing Framework. These frameworks support the United Nations (UN) Sustainable Development Goals (SDGs), Citi Group added.
The money raised via sustainability-linked deposits will be used by Citi to help multinational customers meet their environmental, social and governance obligations in India, the report said.
Citi’s plans to launch this product in India follows its sustainability-linked supply chain financing and sustainable trade finance strategies in Asia Pacific in 2021.
Recently, the bank announced a co-financing loan for the agricultural sector to IndusInd Bank, along with Japan International Cooperation Agency.
Citi also made a $1 trillion sustainable finance commitment by 2030 last year in August. Through this commitment, Citi will be financing and facilitating a wide range of activities including renewable energy, sustainable transportation, healthcare and affordable housing to help further the acceleration to a sustainable, low-carbon economy that supports the environmental, social and economic needs of society.
Last month, Axis Bank completed acquisition of Citibank’s India consumer business for Rs 11,603 crore.
Citi Group named Aditya Bagree as Head of India markets, South Asia in January this year.
-With inputs from Bloomberg
First Published: Apr 24, 2023 5:03 PM IST
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