Citi, OPIC and Ford Foundation Launch Scaling Enterprise, a $100MM Financing Partnership to Support Social Enterprises
October 23 2019 - 12:00PM
Business Wire
Citi Inclusive Finance, the Overseas Private Investment
Corporation (OPIC) and the Ford Foundation today introduced Scaling
Enterprise, a $100 million loan guarantee facility, which will
enable Citi to provide early-stage financing in local currency to
companies that expand access to products and services for
low-income communities in emerging markets. The announcement was
made at the 2019 SOCAP Conference.
Loans and working capital in local currency and at affordable
rates can enable early-stage social impact companies to achieve
scale, greater efficiencies and lower costs. Scaling Enterprise
will facilitate vital growth financing to eligible companies that
are expanding access to finance, agriculture, energy, affordable
housing, water and sanitation to low-income households in emerging
markets.
Marking the first two transactions under Scaling Enterprise, the
partners have committed $5 million in financing to INI Farms to
help smallholder banana and pomegranate farmers in India access
export markets and increase incomes by up to 20 percent, as well as
$5 million in financing to d.light to expand access to off-grid
solar energy in Kenya.
In addition to enabling companies to scale and expand their
impact, the partnership will help these ventures gain a wider array
of mainstream financing options in the future.
“The most innovative ideas are often developed by small, early
stage businesses without access to the capital they need to expand
their reach and impact,” said OPIC’s David Bohigian. “OPIC
is pleased to partner with Citi and the Ford Foundation to help
these ventures scale sustainable solutions to challenges facing
low-income communities across the world.”
“For many companies that are working to meet the needs of
vulnerable and underserved populations in emerging economies, their
reach is limited by a lack of access to affordable finance,” said
Bob Annibale, Global Director, Citi Inclusive Finance.
“Scaling Enterprise is an example of how multisector partnerships
and collaboration with trusted local intermediaries can serve this
last mile to reach communities and drive inclusive economic
growth.”
“This extraordinary and innovative partnership with Citi and
OPIC exemplifies how to utilize our capital markets to combat
inequality and exclusion,” said Christine Looney, Deputy
Director of Mission Investments at the Ford Foundation. “By
aligning our collective resources to strengthen and empower
hyper-local institutions, there is a pathway to create a more just
and responsible approach with hopefully more equitable outcomes and
demonstrates the Ford Foundation’s commitment to mission
investments.”
This new initiative builds on the longstanding partnership
between Citi’s Export Agency Finance and OPIC, including supporting
inclusive finance programs in emerging markets that have provided
more than $533 million in lending and supported more than 1.37
million borrowers -- 87 percent of whom are women.
About Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
About the Overseas Private Investment Corporation
(OPIC)
The Overseas Private Investment Corporation (OPIC) is a
self-sustaining U.S. Government agency that helps American
businesses invest in emerging markets. Established in 1971, OPIC
provides businesses with the tools to manage the risks associated
with foreign direct investment, fosters economic development in
emerging market countries, and advances U.S. foreign policy and
national security priorities. OPIC helps American businesses gain
footholds in new markets, catalyzes new revenues and contributes to
jobs and growth opportunities both at home and abroad. OPIC
fulfills its mission by providing businesses with financing,
political risk insurance, advocacy and by partnering with private
equity fund managers.
OPIC services are available to new and expanding businesses
planning to invest in more than 160 countries worldwide. Because
OPIC charges market-based fees for its products, it operates on a
self-sustaining basis at no net cost to taxpayers. All OPIC
projects must adhere to best international practices and cannot
cause job loss in the United States.
About the Ford Foundation
The Ford Foundation is an independent, nonprofit grant-making
organization. For more than 80 years it has worked with courageous
people on the frontlines of social change worldwide, guided by its
mission to strengthen democratic values, reduce poverty and
injustice, promote international cooperation, and advance human
achievement. With headquarters in New York, the foundation has
offices in Latin America, Africa, the Middle East, and Asia.
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Stephanie Hyon stephanie.hyon@citi.com +1 (212) 816-3397
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