23 Feb 2015 06:00
Program supports Abu Dhabi Government’s 2030 vision to improve access to finance for suppliers and strengthen the supply chain.
Abu Dhabi, 23 February 2015 – Citi, the leading provider of cash
management and trade services in the MENA region and Etihad Airways, the
national airline of the United Arab Emirates, today announced the signing of an
agreement to provide a Supply Chain Finance (SCF) solution to pay select
The innovative financing program will enable Etihad Airways to
unlock liquidity and pay its suppliers almost immediately through funding
provided by Citi. It also offers a highly customised structure that will cater
to the airline’s supplier segment across the globe, and will facilitate access
to liquidity across businesses of all sizes.
The partnership with
Etihad Airways marks Citi’s first supply chain financing deal in the airline
sector in EMEA and the first ever SCF partnership for Citi in Abu Dhabi. Equally,
Etihad Airways will also be launching the program for the first time. The solution
will be rolled out in two phases with the first
phase covering a select number of key suppliers, and will subsequently be rolled
out to remaining suppliers in the second phase.
Etihad Airways’ Chief Financial Officer, said:“Our suppliers are an essential part of the
success of our business and we are happy to provide the tools that offer new
credit and liquidity sources and accelerate their access to cash flow.
“This project is a great example of how
we can work together with Citi to improve access to finance for our suppliers
and encourage their development in the region to build a
sustainable and vibrant economy”.
Steve Donovan, Citi’s Head of Treasury and Trade Solutions (TTS) for the Middle
East, North Africa, Pakistan and Turkey, said: “This is an important
milestone for Citi’s efforts in support of the key airline sector in the UAE.
“We are committed to providing the best
supply-chain finance solutions to our clients, and place significant emphasis
on developing a long-term partnership with Etihad Airways for the benefit of their suppliers.”
Citi has been present in the Middle East and North Africa since
1955, and offers full scale corporate and investment banking services in Egypt,
UAE, Bahrain, Qatar, Kuwait, Lebanon, Jordan, Tunisia, Morocco, Algeria,
Pakistan and Iraq. Citi's institutional capabilities in the region include
Treasury & Trade Solutions, Corporate & Investment Banking, Capital
Markets Origination, Global Markets and Islamic Banking.