This social financing to IndusInd Bank will be used by farmers to purchase farm equipment, crops, seeds, and fertilisers
Citi and the Japan International Cooperation Agency (JICA) have announced a co-financing loan to IndusInd Bank. This includes a $30 million loan by Citi and JPY 13 billion ($97.6 million) loan by JICA. This high-impact social finance offering that Citi arranged for IndusInd Bank is expected to improve financial access for farmers and catalyse capital investment in the agricultural sector in India.
K Balasubramanian, head of the corporate bank for Citi in South Asia covering India, Bangladesh, and Sri Lanka said, “This social financing to IndusInd Bank will be used by farmers to purchase farm equipment, crops, seeds, and fertilisers, as well as by small agricultural supply chain service providers. This transaction, in which Citi collaborates with JICA, marks our first structured co-financing arrangement to support India’s agricultural sector”.
This agreement highlights Citi and JICA’s support for strengthening food security in the country through funding the agricultural sector and sustainable food systems.
Citi has committed $1 trillion to sustainable finance by 2030, as well as expanding access to basic services for 15 million underserved and low-income households, including 10 million women. This financing contributes to Goals 1, 8, and 17 of the Sustainable Development Goals (SDGs), reducing disparities in India by helping improve financial access to projects that contribute to solving agricultural issues. It also helps contribute to food security amid concerns about high food prices and supply shortages due to instability in the global situation.