Citi Treasury and Trade Solutions has launched a fixed-term green deposit product that allows clients to invest their short-term liquidity in environment-friendly projects.
Investments in the green deposit solution will be used to finance or refinance a portfolio of green projects that meet the rigorous environmental finance eligibility criteria defined in the Citi Green Bond Framework. The framework is aligned with the recommendations of the International Capital Market Association Green Bond Principles 2018 and aimed at helping advance the United Nations’ Sustainable Development Goals.
The new offering arrives on the market as more companies have an increased awareness of the importance of environmental, social and governance (ESG) and sustainable investing, and want to direct their long and short-term investment portfolios towards financial solutions that have a positive impact on the environment and society.
Stephen Randall, global head of liquidity management services at Citi Treasury and Trade Solution, says: “With our new green deposit solution, we are expanding our sustainable investment offering to serve the needs of our clients and assist them in achieving their sustainability goals.”
Earlier this year Citi launched its 2025 Sustainable Progress Strategy with the ambition to be a leading bank in driving the transition to a low-carbon economy. This strategy builds on the bank’s sustainable finance commitments by focusing on a new five-year US$250 billion Environmental Finance Goal to advance solutions to address climate change around the world in addition to priorities focused on climate risk and sustainable operations.
“Citi’s launch of a green deposit offering is a great example of next-generation sustainable finance solutions for our clients,” Citi’s chief sustainability officer Val Smith notes. “We are seeing demand for a full range of sustainability offerings, and we are committed to working with our clients as they look towards a smooth transition to a low-carbon economy.”