Citi and Home Credit's First Social Financing Facility to Further Support Financial Inclusion in the Philippines

Citi, the country's largest foreign bank, and Home Credit, a global leader in consumer finance, today announced the launch of a new joint social finance facility in the Philippines. The new loan is designed to promote greater financial inclusion for Filipinos and is the first example of its kind for Home Credit supporting the mobile segment.

The first tranche of this transaction amounting to Php 420 million - is expected to support mobile device purchases, about half of which would be to women for the purchase of basic digital devices like smartphones and tablets. With a basic digital connection and a basic digital device, users will be able to connect to the internet and access essential services such as online banking, financial literacy, productivity apps for running one's own business and avail of online education.

Borrowers can apply for a loan at Home Credit's thousands of partner merchants where they can purchase their digital devices. They can also apply for a loan through Home Credit's app.

Borrowing at the "point-of-sale" as offered by Home Credit is the first experience many Filipinos have of any kind of credit. This inclusive loan is especially targeted at women, who comprise around 50% of Home Credit's total borrowers.

The facility is a social loan which qualifies under the "S" in both company's approach to Environmental, Social and Governance (ESG). It will be monitored every quarter through a certification detailing the "mobile-point of sale" portfolio for key performance indicators (KPIs) including the number of new digital devices (including smartphones) financed and percentage of female borrowers.

This transaction contributes to Citi's $1 trillion commitment to sustainable finance by 2030, specifically supporting the social finance criteria of economic inclusion, which is to improve access to credit and financial services in vulnerable or underserved communities, including micro, small, and medium enterprise (MSME) financing. It will also generate employment opportunities as well as improve public spaces and community resources.

"Supporting basic digital infrastructure is a tenet of Citi's approach to social financing in emerging economies. Through Citi's first social finance facility we would like to give more Filipinos access to financial services to grow their business, and in this way affirm our commitment to the country as we celebrate our 120th year in the Philippines," said Citi Philippines CEO Aftab Ahmed.

"This loan facility is a continuation of a deliberate strategy at Home Credit to pursue innovative and sustainable funding options for our business. Empowering our customers to live better lives is a core part of our approach. This loan is another example of how we are working to deliver sustainable, responsible financial services and products in developing markets," said Jean Lafontaine, Head of Funding, M&A and Investor Relations, Home Credit Group

"Today's announcement marks an exciting new chapter in Home Credit's story in the Philippines. I am proud that the measured KPIs of the loan will be particularly beneficial to our female customers. The combination of safe access to responsible financial services and digital technology has the potential to have a transformative effect for Filipinos across the country," said David Minol, President and Chief Executive Officer of Home Credit Philippines