KUALA LUMPUR: Malaysia Aviation Group (MAG) and Citi have set up a US$75 million structured trade finance facility to support the group's supply chain strategy and operational needs across Asia.
The financing is designed to improve working capital management, enhance liquidity and strengthen supply chain resilience.
It supports MAG's efforts to optimise working capital across its supplier network while providing greater certainty and flexibility for strategic suppliers operating across multiple markets.
"With the structured trade facility in place, MAG looks forward to enhancing the cross-border payment solutions we have while further strengthening our relationship with our valued vendors across multiple markets," said MAG group chief finance officer Muhammad Najmi Mansor.
Developed with strategic suppliers across multiple markets, the facility brings participating entities together under a single financing framework.
Drawing on Citi's global network, the solution supports efficient cross-border payment flows and helps address the challenges of managing suppliers across multiple jurisdictions.
Citi country officer and banking head in Malaysia Vikram Singh highlighted Citi's commitment to delivering innovative solutions for clients operating across complex international supply chains.
"We are pleased to support MAG with a solution tailored to the complexities of managing its regional supply chain. By leveraging our strong regional footprint and collaboration across Malaysia, Singapore, and China, our services business delivered an industry-leading bespoke trade solution for the aviation sector.
"This transaction demonstrates how innovative trade finance solutions can help businesses navigate increasingly complex cross- border operating environments while maintaining financial flexibility," he added.
© New Straits Times Press (M) Bhd