Citi & Etihad Airways sign supply chain finance deal
Citi and Etihad Airways today announced the signing of an agreement to provide a Supply Chain Finance (SCF) solution to pay select suppliers.
The financing programme will enable the airline to unlock liquidity and pay its suppliers almost immediately through funding provided by Citi, which supplies cash management and trade services throughout the MENA region.
It also offers a highly customised structure that will cater to Etihad Airways' supplier segment across the globe and facilitate access to liquidity across businesses of all sizes.
The partnership 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. It is also a first for Etihad Airways.
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.
James Rigney, 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.”