Citibank Provides BDT 1.23 Billion Financing for BRAC

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Innovative Backstopped Facility Allows BRAC to Leverage on Citibank's Strength

August 28, 2007, Bangladesh – BRAC, the world's largest national NGO with over five million borrowers, has entered into a backstopped facility with Citibank, N.A. Bangladesh and its partner banks to avail financing for rural development specially supporting its post-flood rehabilitation programs. The BDT 1.23 billion backstopped facility, coordinated by Citibank, is the first such facility ever done for a microfinance institution globally.

"This solution underlines Citi's commitment towards supporting the cause of microfinance globally and the post-flood rehabilitation program in Bangladesh, and it also marks BRAC's openness towards innovative financial solutions to channel the benefits of modern finance to its microborrowers," said Fazle Hasan Abed, Chairperson, BRAC.

Citibank directly provided BDT 710 million, and the local banks Eastern Bank Limited, The City Bank Limited, Trust Bank Limited and United Commercial Bank Limited have jointly extended the remaining BDT 520 million whereby Citibank is the backstop provider.

"We will expand and broaden access to finance for microfinance institutions such as BRAC not all on our own, but through alliance partners, including other commercial banks, investors and large commercial networks working to provide services to the majority in our communities," said Sanjay Nayar, CEO India and Area Head, Citi South Asia.

Robert Annibale, Global Director, Citi Microfinance added, "We are glad to support BRAC in its post-flood rehabilitation efforts in Bangladesh and this will mark the advancement of the microfinance sector towards inclusion into the mainstream financial market."

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Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.

Citi Microfinance Group
Established in 2004, the Citi Microfinance Group leverages specialized microfinance expertise with the resources and experience of the company's Corporate and Investment Banking, Consumer, and Global Wealth Management businesses, product groups and employees to work with partners to address the needs of those who are not currently reached or are underserved by formal financial institutions.

BRAC
With more than 100,000 employees, BRAC is the largest NGO in the world. Diagnosing poverty in human terms and recognizing its multidimensional nature, BRAC takes holistic approach in striving to fulfill its twin objectives of poverty alleviation and the empowerment of the poor. This approach combines economic development and livelihood generation enterprises with health, education and other social programs. BRAC's outreach covers all 64 districts of the country, and it has been called upon to assist a number of countries, including Afghanistan and Sri Lanka.

Source: Citibank