Citi (NYSE: C) has announced the launch of a new sustainable time deposit solution designed to assist U.S. institutional clients when investing excess cash while supporting their sustainability goals.
Citi’s new Sustainable Time Deposit (TD) will “deliver competitive yields and supports projects identified under Citi’s green and social bond frameworks, expanding the program launched in Europe, the Middle East and Asia last year.”
Stephen Randall, Global Head of Liquidity Management Services, Treasury and Trade Solutions, Citi, said:
“Finance and treasury teams are playing an increasingly strategic role in helping their firms to support their sustainability and environmental, social and governance (ESG) goals. Our new Sustainable Time Deposit solution reflects Citi’s commitment to providing tools that help our clients reach their goals with their own organizations and their communities.”
Funds deposited into Sustainable TDs are “allocated toward financing or refinancing assets in a portfolio of eligible green and/or social finance projects, based on criteria set in the Citi Green Bond Framework, Social Finance Bond Framework and Social Bond for Affordable Housing Frameworks, including projects for renewable energy, energy efficiency, water quality, and conservation as well as in social projects that expand financial inclusion for women and traditionally under-represented communities.”
In addition, the funds may be “allocated to finance or refinance affordable housing projects in the U.S., including the construction, rehabilitation, and/or preservation of housing for low and moderate-income populations who are generally restricted to 60% or below of Area Median Income tenants.”
Those projects may “include many types of housing communities, each with distinct social impact and benefits.”
Michael Fossaceca, North America Region Head, Treasury and Trade Solution, Citi, said:
“The expansion of our sustainable product suite is an important step toward providing comprehensive sustainable cash management solutions to our clients. We are excited to bring this capability to our clients in the U.S.”
Citi’s Sustainable Time Deposit solution is now “available in the U.S., U.K., Ireland, Abu Dhabi, Hong Kong and Singapore and the organization is working to expand this capability to additional countries.”
Citi’s Frameworks are “aligned with the recommendation of the International Capital Market Association’s Green Bond Principles and Social Bond Principles.”
As noted in the update, Citi’s Treasury and Trade Solutions (TTS) “enables their clients’ success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe.”
Based on the foundation of the industry’s largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS “continues to lead the way in offering the industry’s most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.”