Citi has launched its first Middle East and North Africa (MENA) Sustainability-linked Supply Chain Finance (SSCF) program in Algeria with the aim of supporting clients as they advance their ESG priorities, improve the resilience of their supply chains and manage their working capital needs. Supply Chain Finance (SCF) programs benefit companies and their suppliers as they prioritize their working capital positions respectively. In using Citi's SCF program, for example, the bank would provide financing to a client's suppliers from the date of collection of specific goods/provision of services to the date on which payment is owed to these suppliers.

The cost of this financing is borne by suppliers at a rate lower than their usual cost of funds. As a result, suppliers benefit from cash flow acceleration, quicker payment, and improved financing costs. Citi's first MENA SSCF program has been implemented for German chemical and consumer goods company, Henkel.

The program has been initially launched with suppliers in Algeria and will be expanded to include additional markets and suppliers in the coming months. The program is also a first for Henkel in IMEAT and is targeted at existing or new suppliers who demonstrate strong or improving sustainability performance. Qualifying suppliers can access Citi's supply chain financing at preferential rates, improving as a supplier's sustainability score improves.

Henkel, with the support of a global leading sustainability assessment agency, will periodically assess the sustainability performance of its suppliers.