Citi expects social finance funding in Asia to rise by over 10% this year.
According to Citi, the increase is expected to cut across various types of financing, including social trade loans, securitisations, co-financing partnerships with development agencies, term loans and revolving working capital facilities.
Initial public offerings (IPOs), too, could be one potential avenue.
“The pipeline is across markets, products and different sectors,” says Jorge Rubio Nava, Citi’s global head of social finance. “We are also seeing increasing investor demand for access to invest in social finance, and it is increasingly becoming a key asset class.
In 2024, Citi led 76 social finance transactions that raised some US$2.4 billion ($3.25 billion) across Asia. These included areas across microfinance, food security and sustainable agriculture systems, healthcare, education, infrastructure and digital connectivity, and affordable housing for underserved and low-income communities.
The US$2.4 billion in funds mobilised represented over 50% of the bank’s total transactions and more than 40% of total funds, making Asia the largest region globally for Citi for social financing.
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According to Citi, the deals reached 1.56 million underserved and low-income households, including 565,000 women. They span nine countries: Bangladesh, China, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
“We are confident that we can grow this further in 2025, supporting our clients on their journeys towards sustainable growth in their local economies,” adds Rubio Nava, a 19-year Citi veteran based in London.
The US-headquartered bank issued its first social bond in October 2021, priced close to par with a four-year tenor and 1.281% fixed rate coupon. Proceeds were used to fund healthcare, affordable housing, education and other goods and services that meet the bank’s social principles.
