EBRD and Citi Launch Sustainable Supply Chain Finance Programme With Metso Outotec
(20 April 2023 – Finland) The European Bank for Reconstruction and Development (EBRD) and Citi are jointly supporting the rollout of a sustainable supply chain finance programme for Finnish technology and services company Metso Outotec.
The EBRD will fund risk participation of up to €25 million in Metso Outotec’s supply chain finance program, administered by Citi, to provide eligible Türkiye based suppliers, the majority of which are small and medium-sized enterprises (SMEs), with access to affordable working capital finance and its suppliers in Türkiye.
Metso Outotec is a Helsinki based that provides technology, end-to-end solutions, and services for the aggregates, minerals processing, and metals processing industries.
This incentive model aims to expedite the transition of suppliers to greener operating models and contribute to Metso Outotec’s ongoing efforts to decarbonise its supply chain. This “sustainable supply chain finance” model is being increasingly adopted by large corporates to drive climate and social action in their supply chains.
The EBRD’s Supply Chain Solutions Framework is a product innovation that supports the development of sustainable and resilient supply chains. It enables the EBRD to participate, funded or unfunded, in the supply chain finance programs that financial institutions offer to larger corporates, including multinationals, whose suppliers are based in EBRD regions.
Through this program, SMEs will have access to more affordable and timely working capital finance, and may also receive advisory support from the EBRD’s Advice for Small Businesses program to align with best-practice environmental, social, and governance standards.
“Working with Metso Outotec and the EBRD demonstrates the benefits Citi Sustainable Supply Chain Finance has in advancing ESG-related objectives by incentivising suppliers for delivering Metso-EBRD targets. This collaborative effort enables improved working capital solutions and is a great example of a client partnership which drives us to build the future of commerce today,” commented Citi Global Head of Trade and Working Capital Solutions, Chris Cox.