American banking giant Citi led by bankero Aftab Ahmed is extending a P420 million social financial facility to leading global consumer finance company Home Credit to further promote greater financial inclusion in the Philippines.
Ahmed said supporting basic digital infrastructure is a tenet of Citi’s approach to social financing in emerging economies.
“Through Citi’s first social finance facility we would like to give more Filipinos safe access to affordable financial services to grow their business, and in this way affirm our commitment to the country as we celebrate our 120th year in the Philippines,” the bankero said.
The transaction contributes to Citi’s $1 trillion commitment to sustainable finance by 2030, specifically supporting the social finance criteria of economic inclusion, which is to improve access to credit and financial services in vulnerable or underserved communities, including micro, small, and medium enterprise (MSME) financing. It will also generate employment opportunities as well as improve public spaces and community resources.
The loan agreement between Home Credit Philippines and Citibank N.A. – Philippine Branch is expected to support purchases of mobile devices in the Philippines, about half of it would be for women.
This also enables them to access features of a digital device such as online banking, tracking financial progress, installing productivity apps for their business, among others.
“Today’s announcement marks an exciting new chapter in Home Credit’s story in the Philippines. I am proud that the measured KPIs of the loan will be particularly beneficial to our female customers. The combination of safe access to responsible financial services and digital technology has the potential to have a transformative effect for Filipinos across the country,” Home Credit Philippines president and CEO David Minol said.
Home Credit Group head of funding, M&A, and investor relations Jean Lafontaine said the loan facility is a continuation of a deliberate strategy at Home Credit to pursue innovative and sustainable funding options.
“Empowering our customers to live better lives is a core part of our approach. This loan is another example of how we are working to deliver sustainable, responsible financial services and products in developing markets,” Lafontaine added.