The International Finance Corporation (IFC) and Citi announced an agreement on Thursday, October 29, 2026, to establish a trade finance facility of up to $2 billion. The arrangement is designed to help businesses in Africa, Asia and Latin America obtain the financing they need to import supplies, fulfil orders and expand cross-border trade.
Under the agreement, IFC, the World Bank Group’s private-sector arm, will provide Citi with guarantees of up to $1 billion. The US bank will commit an equivalent amount, bringing the facility’s potential combined capacity to $2 billion. By sharing transaction risks, the partners aim to expand Citi’s ability to offer trade credit in markets where such financing remains expensive or difficult to secure.
More than 100 companies are expected to benefit over three years. Citi will also direct at least $500 million of its own trade financing towards activities with climate benefits, including water and sanitation infrastructure, renewable energy, energy-efficient manufacturing and sustainable agriculture. The programme spans several regions, although the partners have not specified allocations by country.
Sharing risk to expand access to trade credit
Importers and exporters often need working capital between paying for goods, manufacturing or shipping products and receiving payment from customers. By covering part of Citi’s risk, IFC aims to increase the bank’s capacity to finance those transactions, including for mid-sized companies with fewer borrowing options.
The new facility builds on a partnership dating back to 2006. According to IFC, the institutions have supported roughly $65 billion in emerging-market trade through financing and liquidity programmes, including $8.6 billion in countries eligible for International Development Association support. Their October 29 agreement seeks to extend that risk-sharing model as IFC estimates the global trade finance gap at $2.5 trillion.