MAG and Citi establish US$75 million supply chain financing facility
The arrangement is intended to improve working capital management and give the aviation group's strategic suppliers more flexibility across markets.
Malaysia Aviation Group (MAG) and Citi have established a structured trade financing facility worth US$75 million to help fund the aviation group's operations and supply chain activities in Asia.
The financing is intended to bolster liquidity, make working capital management more efficient and improve supply chain resilience. Developed with strategic suppliers in several markets, it places participating entities within one financing framework.
MAG group chief finance officer Muhammad Najmi Mansor said the group expected the arrangement to improve its cross-border payment capabilities and deepen relationships with vendors across different markets.
The arrangement uses Citi's international network to facilitate payments across borders and help manage the difficulties of dealing with suppliers in different jurisdictions.
Vikram Singh, Citi's country officer and banking head in Malaysia, said the bank had tailored the financing to MAG's regional supply chain. He said its services business developed the arrangement through collaboration across Malaysia, Singapore and China.
