SINGAPORE: Social finance funding in Asia is expected to rise by 10 per cent this year, with growth expected across different financing types, including social trade loans, securitisations, co-financing with development agencies, term loans, revolving working capital facilities, and initial public offerings (IPOs), according to Citi.
Jorge Rubio Nava, Citi’s Global Head of Social Finance, said, “The pipeline is across markets, products, and different sectors. We are also seeing increasing investor demand for access to invest in social finance, and it is increasingly becoming a key asset class.”
Last year, Citi led in social finance transactions in Asia, raising over US$2 billion (S$2.69 billion). The bank also led 76 deals across nine APAC countries, including Bangladesh, China, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, as reported by the Singapore Business Review.
In total, it mobilised over US$2.4 billion (S$3.23 billion) in funds, accounting for over 50% of its global social finance transactions and more than 40% of total funds.
Social finance covers economic and financial inclusion, healthcare, food security and sustainable agriculture, education, affordable housing and basic infrastructure, and digital connectivity.
Mr Nava expressed confidence in further growth in 2025, stating that Citi will continue helping clients achieve sustainable growth in their local economies. /TISG
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