Citibank, NA Bangladesh and ASA yesterday signed a credit facility agreement for microfinance portfolio expansion in rural Bangladesh, says a press release.

As per the agreement, Citibank will provide USS 10 million in equivalent local currency to ASA, one of the world's leading Micro Finance Institutions (MFIs).

Md Shafiqual Haque Choudhury, founder and president of ASA, and Mamun Rashid, managing director and Citi country officer, Bangladesh, signed the agreement on behalf of their organizations. The financing will allow ASA to diversify its funding sources and also disburse more funds to a larger number of micro entrepreneurs, reinforcing ASA's determination in helping the development of the micro-credit sector.

This transaction will mark yet another milestone in the development of micro-finance industry. ASA has also recently received the Financial Times Award for Banking at the Bottom of the Pyramid. According to Financial Times, ASA has a highly efficient delivery model, which they started in Bangladesh and refined and are now migrating it to Africa. “Given Citi's leadership in supporting MFIs globally and expertise jn providing exemplary banking solution, we are pleased to tie up with Citibank," said Md Shafiqual Haque Choudhury.

Mamun Rashid added, "These transactions in the microfinance sector are a testament to Citi's strong commitment to deepening financial reach especially through wholesale financing to MFIs in the country."