KUALA LUMPUR (Oct 23): Malaysia Aviation Group (MAG) and Citibank Bhd (Citi) have announced a US$75 million (RM306 million) structured trade finance facility to improve working capital management, enhance liquidity and strengthen supply chain resilience to support MAG’s operational requirements across Asia.

Citi said the facility connects strategic suppliers in Malaysia, Singapore and China through a single financing framework, supporting MAG’s efforts to optimise working capital across its supplier network while providing greater certainty and flexibility for strategic suppliers operating across multiple markets.

“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,” the banking group said in a statement.

It said the solution, developed through structured collaboration with a strategic supplier in China, required close coordination across multiple regulatory, legal and operational environments to address the unique requirements of a cross-border aviation ecosystem.

Citi's country officer and banking head for Malaysia, Vikram Singh, said the bank leveraged its strong regional footprint and collaboration across Malaysia, Singapore and China to deliver a bespoke trade solution for the aviation sector.

“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 said.

Citi said the transaction highlighted the role of cross-border collaboration and efficient capital deployment in supporting supply chains linked to the aviation sector by combining MAG’s operational scale with the bank’s global trade finance capabilities.

Uploaded by Tham Yek Lee