Citigroup targets social finance deals in Asia as demand grows

Citi led 76 transactions in Asia last year, raising US$2.4 billion, according to the bank

CITIGROUP said it expects social finance funding in Asia to rise by more than 10 per cent this year as investor demand increases.

The bank’s pipeline includes trade loans, securitisations, partnerships with development agencies, and initial public offerings, according to a statement on Tuesday (Feb 11).

Social finance aims to tap global capital markets to help fund programmes dealing with some of society’s most intractable problems, from affordable housing and education to food security and healthcare. In some cases, foundations and development banks provide grants or willingly take below market-rate returns to attract more funding from private investors.

Citi led 76 transactions in Asia last year, raising US$2.4 billion, according to the bank. The region made up more than half of total transactions for social finance globally, and over 40 per cent of total funds.

Still, social finance remains niche compared with other environmental, social and governance finance, and the overall debt market. Social bond issuance to the end of September for 2024 stood at US$152.2 billion, a fifth of the sustainable debt market, according to the Climate Bonds Initiative. BLOOMBERG

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