Social finance funding in Asia is set for a significant boost in 2025, with Citi projecting growth of more than 10% across various financing segments. The increase is expected to span social trade loans, securitizations, co-financing partnerships with development agencies, term loans, revolving working capital facilities, and initial public offerings (IPOs).
“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,” said Jorge Rubio Nava, Global Head of Social Finance at Citi.
In 2024, Citi played a key role in mobilizing over US$2 billion across Asia through social finance transactions. These funds supported initiatives in microfinance, food security, sustainable agriculture, healthcare, education, infrastructure, digital connectivity, and affordable housing for low-income communities.
The growth in 2025 is expected to build upon this strong foundation. “We are confident that we can grow this further in 2025, supporting our clients on their journeys towards sustainable growth in their local economies,” added Rubio Nava.
Asia emerged as Citi’s largest market for social finance in 2024, with the region accounting for over 50% of the bank’s total transactions and more than 40% of the total funds raised globally. The bank led 76 transactions across nine countries: Bangladesh, China, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
In total, Citi mobilized US$2.4 billion in social finance funds across Asia last year. The key sectors driving this growth included economic and financial inclusion, healthcare, food security and sustainable agriculture, education, affordable housing, and basic infrastructure. Digital connectivity also emerged as a critical area of investment, supporting the region’s broader digital transformation goals.
India continues to be a critical market in Citi’s social finance strategy. With a presence spanning more than 120 years, Citi India offers a wide range of financial services across consumer banking, corporate and investment banking, wealth management, and trade services. The bank’s citizenship programs in India focus on financial capability, microfinance, enterprise development, and initiatives related to youth education and livelihoods.
As Asia’s economies navigate post-pandemic recovery and ongoing structural transformations, Citi’s increased focus on social finance underscores the growing recognition of the sector’s role in promoting inclusive, sustainable growth across the region.