IFC, Citi Launch $2bn Trade Finance Facility
The World Bank's private sector arm and Citi are backing trade financing for companies in emerging markets where credit is scarce.
Updated on Nov. 4, 2026 in International Trade
The International Finance Corporation and Citi have launched a US$2bn trade finance facility aimed at emerging markets. The IFC will provide guarantees of up to US$1bn to Citi, which will commit a matching amount over the next three years.
Why it matters
The facility targets markets where costly and scarce trade finance limits companies' ability to import inputs, fulfil orders, and hire. Guarantees free up balance sheet capacity at Citi, allowing it to extend more trade financing.
The facility is structured as a 50-50 risk-sharing arrangement, with the IFC covering up to half the risk on each eligible transaction and Citi retaining the rest. Citi has committed at least US$500mn of its own trade financing to climate-benefit sectors, and the facility's ultimate deployment has not yet been reported.
The players
International Finance Corporation (IFC)
The IFC is the private-sector investment arm of the World Bank Group, providing financing and risk-sharing guarantees to businesses in developing economies.
Citi
Citigroup, headquartered in New York City, is one of the largest global banks and a major provider of trade finance worldwide.
The details
The facility will initially operate across multiple countries in Africa, Asia, and Latin America, targeting corporates and small and medium-sized enterprises. The partnership follows an IFC arrangement with SMBC on a US$500mn supply chain finance facility earlier this month.
Timeline
Since 2006: IFC and Citi have financed approximately US$65bn in emerging markets trade through their partnership.
Earlier this month: IFC partnered with SMBC on a US$500mn supply chain finance facility.
Over the next three years: Citi will commit a matching amount to the new facility.
Market Dynamics
The facility extends the IFC's established model of guaranteeing commercial bank trade lending into a larger, 50-50 risk-sharing structure. It follows the IFC's recent partnership with SMBC, signaling a broader pattern of multilateral institutions using guarantees to draw private bank capital into emerging-market trade.
For companies in Africa, Asia, and Latin America, the facility may make it easier to secure financing for imports and orders. Investors and stakeholders may watch the facility's disbursement figures and the number of companies it reaches as it operates.
The takeaway
Trade finance gaps can constrain firms that depend on imports and export orders, so guarantee-based partnerships between multilateral lenders and commercial banks are one tool being used to address them. Readers tracking emerging-market growth may find the facility's reported outcomes useful as it scales.
Further reading
For broader context on cross-border lending, see International Trade.
Source note: This article includes information reported by Global Trade Review (GTR).
