Citi announced the launch of a new sustainable time deposit solution designed to assist US 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.
The sustainable TD solution is now available in the US, UK, Ireland, Abu Dhabi, Hong Kong and Singapore, with work being done to expand this capability to additional countries.
“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,” said Stephen Randall, global head of Liquidity Management Services and Treasury and Trade Solutions at Citi, in a statement. “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.
“The expansion of our sustainable product suite is an important step toward providing comprehensive sustainable cash management solutions to our clients,” added Michael Fossaceca, North America region head in Treasury and Trade Solution at Citi, in a statement.
Citi’s Frameworks are aligned with the recommendation of the International Capital Market Association’s Green Bond Principles and Social Bond Principles.