MAG and Citi announce US$75 million supply chain financing facility
The financing links strategic suppliers in Malaysia, Singapore and China under a common framework, according to Citi.
A US$75 million (RM306 million) structured trade finance facility announced by Malaysia Aviation Group (MAG) and Citibank Bhd (Citi) is aimed at supporting MAG’s operations across Asia. Citi said the objectives include better management of working capital, improved liquidity and a more resilient supply chain.
Under the arrangement, strategic suppliers across Malaysia, Singapore and China are brought into one financing structure. The bank said this would help MAG manage working capital throughout its supplier network and offer suppliers operating in several markets more flexibility and certainty.
Citi said it worked with a strategic supplier in China to develop the arrangement. That process involved coordinating legal, operational and regulatory requirements across jurisdictions. The bank added that its global network would support cross-border payments.
Vikram Singh, Citi’s country officer and banking head for Malaysia, said the bank drew on its regional presence and collaboration across the three countries to tailor the financing to the aviation sector’s needs.
