Manila, Philippines | May 16, 2022 – Global consumer credit leader Home Credit has signed a P420 million ($8.2 million) social finance facility with the country’s largest foreign bank, Citi, to further promote the financial inclusion in the Philippines.
This loan agreement from Home Credit Philippines (HC Consumer Finance Philippines, Inc.) with Citi (Citibank NA – Philippine Branch) is expected to support purchases of mobile devices in the Philippines, about half of which would be for women. It also allows them to access features of a digital device such as online banking, tracking financial progress, installing productivity apps for their business, among others.
“This loan facility is a continuation of a deliberate strategy by Home Credit to seek innovative and sustainable financing options for our business. Empowering our customers to live better lives is central to our approach. This loan is another example of how we are working to provide sustainable and responsible financial services and products in developing markets,” said Jean Lafontaine, Head of Funding, M&A and Investor Relations , Home Credit Group.
Borrowing from the “point of sale” offered by Home Credit is the first experience many Filipinos have with any type of credit. This inclusive loan is particularly aimed at women, who make up around 50% of total Home Credit borrowers.
“Today’s announcement marks an exciting new chapter in the history of Home Credit in the Philippines. I am proud that the loan’s measured KPIs are particularly beneficial to our clients. The combination of secure access to responsible financial services and digital technology has the potential to be transformative for Filipinos across the country,” said David Minol, President and CEO of Home Credit Philippines. .
The facility is a social loan that qualifies under the “S” of the two companies’ approach to environmental, social and governance (ESG). It will be monitored quarterly 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 the percentage female borrowers.
“Supporting basic digital infrastructure is a principle of Citi’s approach to social finance in emerging economies. Through Citi’s first social finance facility, we want to give more Filipinos safe access to affordable financial services to grow their businesses, and affirm our commitment to the country as we celebrate our 120th anniversary in the Philippines,” said said Aftab, CEO of Citi Philippines. Ahmad.
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 enterprises (MSMEs) financing. It will also generate employment opportunities and improve public spaces and community resources.